What changed
Previously, AMCs could only open additional offices in metro cities if they had one non-metro office for every metro office (1:1 ratio). This circular removes that condition entirely, allowing AMCs to decide branch locations freely, though RBI expects diversification to meet tourist demand.
What it means for you
Banks and other authorised money changers can now expand their metro presence without being forced to maintain non-metro branches, reducing compliance burden and operational costs. This may lead to more competitive forex services in urban areas, but RBI still expects balanced geographic coverage.
What you must do
- Update internal branch expansion policies to reflect removal of the 1:1 ratio requirement.
- Ensure new branch openings still align with RBI's expectation of diversification and tourist demand.
- Communicate this change to your forex and branch planning teams for strategic decisions.
Who it affects
Authorised Money Changers (AMCs), Banks with forex operations, Branch expansion planners in financial institutions
Does this mean I can open any number of metro branches without any non-metro branches?
Yes, the 1:1 ratio is removed, but RBI expects branches to be diversified and meet tourist demand. There is no explicit cap, but all other instructions remain unchanged.
Are there any new conditions for opening metro branches now?
No new conditions are introduced. The only change is the removal of the 1:1 ratio. You must still comply with all other existing guidelines under the Memorandum of Instructions.