What changed
Earlier, banks were advised not to extend banking facilities at customer premises without RBI permission. Now, RBI has decided that banks may formulate a scheme for providing services at customer premises with board approval and submit it for RBI approval. In the interim, agency banks may continue serving Central and State Government departments at their premises.
What it means for you
Banks can now develop a scheme for door-step services, potentially enabling cash collection and credit instrument handling at customer locations, pending RBI approval. This could open new revenue streams and improve convenience, especially for government departments. Banks must ensure compliance with Section 23 of the Banking Regulation Act, 1949.
What you must do
- Formulate a door-step banking scheme with board approval, detailing services at customer premises.
- Submit the approved scheme to RBI for approval before implementation.
- For now, continue providing door-step services to Central and State Government departments as agency banks without interruption.
- Review and update internal policies to align with the new regulatory framework.
Who it affects
All scheduled commercial banks (excluding RRBs), Central and State Government departments
What is the key change from the 1983 circular?
The 1983 circular advised banks not to extend banking facilities at customer premises without RBI permission. This circular allows banks to formulate a board-approved door-step banking scheme and seek RBI approval.
Can we immediately start door-step banking for all customers?
No. You must first get board approval for a scheme and then submit it to RBI for approval. Only after RBI approval can you implement the scheme. However, agency banks can continue serving government departments in the interim.
Does this apply to Regional Rural Banks (RRBs)?
No. The circular explicitly excludes RRBs. It applies only to scheduled commercial banks.