What changed
The Master Circular was updated to incorporate all branch authorisation instructions issued between July 1, 2009, and June 30, 2010. It supersedes the previous circular dated July 1, 2009, and now includes updated annexures and procedures for underbanked districts, off-site ATMs, and foreign bank guidelines.
What it means for you
Banks must follow the updated framework for all branch-related actions, ensuring compliance with Section 23 of the Banking Regulation Act. The circular provides clarity on general permissions for ATMs, shifting rules, and reporting formats, which streamlines branch expansion planning. Lenders should align their annual branch expansion plans with the revised underbanked district lists and tier-wise classification.
What you must do
- Review the updated Master Circular and replace the July 2009 version in your compliance manuals.
- Align your annual branch expansion plan with the revised underbanked district lists and tier-wise classification.
- Ensure all branch opening, shifting, merger, and closure proposals follow the new procedures and reporting formats.
- Update internal training materials for branch operations teams on the latest guidelines.
Who it affects
All commercial banks (excluding RRBs), Local Area Banks, Foreign banks operating in India, Branch operations and compliance teams
Does this circular apply to Regional Rural Banks?
No, the circular explicitly excludes RRBs from its scope. It applies to all other commercial banks, including Local Area Banks.
What is the key change from the 2009 Master Circular?
The circular consolidates all branch authorisation instructions issued up to June 30, 2010, updating the previous July 2009 version. It includes revised annexures for underbanked districts and off-site ATM permissions.
Are foreign banks subject to different rules?
Yes, foreign banks are guided by paragraph 20 of this Master Circular, which contains specific provisions for them.