Home › Circulars › RBI/2007-2008/131

RRBs Allowed Extension Counters at Worship & Market Places

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-2008/131 · issued 04 Sep 2007 · ~2 min read
Quick answerRBI now permits Regional Rural Banks to set up extension counters at places of worship and market places without needing to be the principal banker. A licence from the concerned RBI Regional Office (RPCD) is still mandatory.

What changed

Earlier, RRBs could only open extension counters if they were the principal banker to the entity. This circular removes that condition for counters at places of worship and market places. The change is effective from September 4, 2007.

What it means for you

RRBs can now expand their physical presence more flexibly into high-footfall locations like temples, mosques, churches, and local markets. This liberalisation helps RRBs deepen financial inclusion and capture more walk-in business without the earlier principal banker restriction. Banks must still obtain a licence from the RBI Regional Office before operationalising such counters.

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

Regional Rural Banks (RRBs), RBI Regional Offices (RPCD), Customers in rural and semi-urban areas

❓ Common questions

Regulatory timeline

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

Do RRBs still need RBI approval to open these extension counters?

Yes, RRBs must obtain a licence from the concerned Regional Office of RBI (RPCD) before setting up any extension counter at places of worship or market places.

Does the earlier principal banker condition still apply for other types of extension counters?

The circular only removes the principal banker condition for counters at places of worship and market places. For other locations, the earlier condition as per the July 2, 2007 circular may still apply.

What is the effective date of this circular?

The circular was issued on September 4, 2007, and is effective from that date.

📜 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 #2346: RPCD.CO.RRB.No.BC.22/03.05.90-A/2007-08 — "Opening of Extension Counters by RRBs" dated September 4, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/131 RPCD.CO. RRB. No. BC.22 /03.05.90-A /2007-08 September 4, 2007 All Regional Rural Banks Dear Sir, Opening of Extension Counters by RRBs Please refer to paragraph 5 of our circular  RPCD.CO.RRB. No. BL. BC.09 /03.05.90-A/2007-08 dated July 2, 2007  on the captioned subject. With a view to providing further liberalisation in the matter, it has been decided to allow RRBs to set up Extension Counters at places of worship and market places. The condition of being principal bankers would not apply in such cases. However, RRBs shall be required to obtain necessary licence from the concerned Regional Office of RBI (RPCD). Yours faithfully, (Surekha Marandi) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/131 · issued 04 Sep 2007. 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=3802&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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