What changed
Banks must now submit all new branch proposals (including satellite offices) to DBOD, Central Office using Form VI, and receive a single consolidated authorization letter valid for one year. Off-site ATMs, administrative/controlling offices, credit card centres, and back offices/processing centres are exempt from Form VI. Shifting a branch within the same centre no longer requires prior RBI approval, but the new address must be communicated to the regional office after the branch starts functioning.
What it means for you
This streamlines branch expansion by centralizing approvals and reducing paperwork for routine moves. Banks must plan annual branch openings carefully, as unused permissions expire after 12 months (plus a possible 3-month extension upon request with reasons and address). On-site ATMs within a branch need no separate permission, but quarterly reporting of branch details in Proforma I & II to DESACS, Mumbai and regional offices remains mandatory.
What you must do
- Submit all new branch proposals (including satellite offices) to DBOD, CO with Form VI; exclude off-site ATMs, admin offices, credit card centres, and back offices from Form VI.
- Open branches within one year of the consolidated authorization letter; request a maximum three-month extension from the regional office if needed.
- Report complete address and opening date of each new branch immediately to the concerned regional office.
- Submit quarterly branch details (opened/closed/shifted) in Proforma I & II to DESACS and regional offices, including ongoing data for Authorised Dealer branches.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Branch expansion and planning teams, Compliance and reporting departments
What happens if we don't open a branch within the one-year validity?
The permission lapses automatically. You can request an extension of up to three months from the regional office with reasons and complete address. If still not opened, you must include the branch in the next annual plan.
Do we need separate permission for an on-site ATM inside a branch?
No. On-site ATMs within a branch do not require separate permission.
Can we shift a branch to a different location without RBI approval?
Yes, if the new location is within the same centre. You must inform the regional office after the branch starts functioning from the new address.