RRB Branch Licensing: Empowered Committee Gets More Discretion
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/438 · issued 15 Jun 2007 · ~1 min read
Quick answerRBI has relaxed branch licensing rules for RRBs: compliance with conditions (iii)-(v) of the earlier circular is now left to the Empowered Committee's discretion, encouraging branches in uncovered districts.
What changed
Previously, RRBs had to strictly meet conditions (iii) to (v) under paragraph 1.2 of the July 2006 master circular for branch licensing. Now, compliance with these specific conditions is optional, as the Empowered Committee for RRBs can decide whether to enforce them. Other instructions in the master circular remain unchanged.
What it means for you
This gives RRBs more flexibility to open branches in districts that currently lack banking coverage, as the Empowered Committee can waive certain requirements. Banks can now focus on financial inclusion goals without being rigidly bound by those conditions. However, the core licensing framework still applies, so overall regulatory oversight remains.
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
Review the July 2006 master circular to identify conditions (iii)-(v) that are now discretionary.
Engage with your Empowered Committee to understand how they will apply discretion for new branch proposals.
Prioritize branch expansion in uncovered districts to leverage this relaxation.
Ensure all other branch licensing instructions from the master circular are still complied with.
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What specific conditions are now discretionary for RRB branch licensing?
Conditions (iii) to (v) under paragraph 1.2 of the July 2006 master circular on branch licensing are now left to the discretion of the Empowered Committee for RRBs.
Does this circular change any other branch licensing rules for RRBs?
No, only the compliance with conditions (iii)-(v) is relaxed. All other instructions in the master circular remain unchanged.
Why did RBI make this change?
To encourage RRBs to open branches in districts that are currently uncovered by banking services, promoting financial inclusion.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2424: RPCD.CO.RRB.No.BC.102/03.05.90-A/2006-07 — "Section 23 of the Banking Regulation Act, 1949 - Master Circular on Branch Licensing - Regional Rural Banks (RRBs)”
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/438
RPCD.CO.RRB.No.BC.102/03.05.90-A/2006-07
June 15, 2007
All Regional Rural Banks
Dear Sir,
Section 23 of the Banking Regulation Act, 1949 – Master Circular on Branch Licensing - Regional Rural Banks (RRBs)
Please refer to our circular RPCD.CO.RRB.No.BL.BC/11/03.05.90-A/2006-07 dated July 11, 2006 on the above subject.
2. With a view to encouraging RRBs to open branches in hitherto uncovered districts, it has been decided that the compliance with conditions prescribed at Sr.Nos. (iii) to (v) under paragraph 1.2 of the above circular may be left to the discretion of the concerned Empowered Committee for RRBs. The other instructions contained in the captioned Master Circular will, however, remain unchanged.
3. Please acknowledge receipt to our respective Regional Office.
Yours faithfully,
(C.S. Murthy)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/438 · issued 15 Jun 2007. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=3598&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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