What changed
This master circular updates and consolidates all previous guidelines on branch authorisation, area of operation, extension counters, ATMs, and office shifting for UCBs up to June 30, 2010. It replaces the July 1, 2009 master circular on the same subject. No new policy changes are introduced; it is a compilation of existing instructions.
What it means for you
UCBs must now refer to this single consolidated document for all rules on branch expansion, ATMs, and office changes. Compliance with the updated circular is mandatory, and banks need to acknowledge receipt to their regional RBI office. The circular reinforces existing penalties for violations like unauthorised branch openings or submitting false information.
What you must do
- Acknowledge receipt of this master circular to your respective RBI Regional Office.
- Review and align your branch expansion and ATM plans with the consolidated guidelines.
- Ensure all future applications for branch openings, shifts, or closures follow the procedures in this circular.
- Update internal compliance manuals to reference this circular instead of the 2009 version.
Who it affects
All Primary (Urban) Co-operative Banks, RBI Regional Offices handling UCB supervision, Bank compliance and branch planning departments
Does this circular introduce any new rules for UCBs?
No, it consolidates all existing instructions on area of operation, branch authorisation, extension counters, ATMs, and office shifts as of June 30, 2010, replacing the 2009 master circular.
What happens if a UCB opens a branch without RBI authorisation?
Opening a branch without RBI authorisation is a violation of Section 23 of the Banking Regulation Act, and the circular specifies penal action for such violations.
Do UCBs need to submit any returns under this circular?
Yes, banks must submit quarterly Branch Banking Statistics returns as outlined in the circular.