Master Circular on Branch Licensing
This circular consolidates and updates all the instructions on branch licensing issued by the Reserve Bank of India (RBI) under Section 23 of the Banking Regulation Act, 1949.
The circular is divided into six sections, covering:
Section 1: General
– Definitions and applicability of branch licensing norms.
Section 2: Eligibility Criteria
– Guidelines for banks to open new branches, including eligibility criteria, and requirements for branch expansion.
Section 3: Procedure for Opening of Branches
– Step-by-step procedure for banks to open new branches, including application, approval, and post-approval requirements.
Section 4: Closure of Branches
– Guidelines for banks to close existing branches, including notification, approval, and post-closure requirements.
Section 5: Miscellaneous
– Other aspects of branch licensing, including display of licenses, maintenance of branch records, and penalties for non-compliance.
Section 6: Annexures
– Includes formats for applications, declarations, and other relevant documents.
The circular also incorporates the census data of 2011, which provides demographic and economic information to aid banks in their branch expansion strategies.
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