Home › Circulars › RBI/2005-06/93

RBI mandates annual branch expansion plans linked to corporate strategy

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2005-06/93 · issued 03 Aug 2005 · ~1 min read
Quick answerBanks must now submit annual branch expansion plans by December, covering all customer-contact offices, district-wise and population-group-wise, linked to a three-year corporate strategy. Weightage given for underbanked districts.

What changed

Previously, banks could apply for branch openings anytime during the year. Now, RBI requires annual applications by December, based on a board-approved three-year mid-term corporate plan covering all branch types, including ATMs and extension counters, with district-wise and population-group details.

What it means for you

Banks need to align branch expansion with long-term strategy and developmental priorities, especially in underbanked areas. This shift encourages more structured planning and may slow ad-hoc openings, but offers incentives for rural and semi-urban expansion through weightage in approvals.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All Indian scheduled commercial banks (excluding RRBs), Bank boards and senior management responsible for branch strategy, Branch expansion and planning teams

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the deadline for submitting the annual branch expansion plan?

The plan must be submitted to RBI by December every year. For the current year 2005-06, submit at the earliest.

Does the plan need to include ATMs and extension counters?

Yes, the plan should cover all categories of customer-contact offices, including specialised branches, extension counters, and ATMs.

How does RBI incentivise opening branches in underbanked areas?

RBI provides a list of underbanked districts/states and gives weightage to proposals that include branches in these areas.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2785: DBOD.No.BL.BC.24/22.01.001/2005-06 — "Section 23 of the Banking Regulation Act, 1949 - Branch Expansion Strategy of Banks" dated August 3, 2005”
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/93 DBOD. No.BL.BC.24 / 22.01.001 /2005-06 August 3, 2005 Shravana 12, 1927 (Saka) Chief Executives All Indian scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam, Section 23 of the Banking Regulation Act, 1949 - Branch Expansion strategy of banks As you are aware, banks are submitting applications to us for opening of branches / offices at any time during the year. It has been decided to change this procedure and banks are required to make applications for branch expansion on annual basis linking it to their overall mid-term corporate strategy for branch expansion / business growth keeping in mind the developmental needs of unbanked regions and potential for growth available across the country. 2.You are, therefore, requested to formulate a detailed mid-term corporate plan for branch expansion for a three year period with the approval of your Board. The plan should henceforth cover all categories of branches / offices having customer contact, including specialised branches, Extension Counters and number of ATMs etc. The plan should be formulated on district-wise basis giving number of branches proposed to be opened in Metropolitan/Urban/Semi-Urban/Rural areas. 3.The proposal for branch expansion with the above mentioned details should be submitted to us on an annual basis by December every year. 4.However, for the current year (2005-06), the branch expansion plan may be submitted at the earliest indicating the district-wise proposals for opening of branches (all categories) with break up according to population groups. The proposals may include plans for upgradation of extension counters to full fledged branches and conversion of specialised branches into regular branches. 5. We forward herewith a list of underbanked districts / States to enable you to plan your expansion in these areas. While considering your bank's proposals for branches, weightage will be given to the number of branches proposed to be opened in these districts / States. Yours faithfully, Sd/- (Lalit Srivastava) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/93 · issued 03 Aug 2005. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2408&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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