What changed
The previous Master Circular from July 2, 2007 was updated to include instructions issued between July 1, 2007 and June 30, 2008. The new circular is dated July 1, 2008 and has been placed on the RBI website. Foreign banks are specifically directed to follow paragraph 19 of this circular.
What it means for you
Banks must align their branch expansion plans with the latest consolidated guidelines, ensuring compliance with updated norms. The circular serves as a single reference for all branch authorisation requirements, reducing ambiguity. Foreign banks have a specific provision in paragraph 19 that they must adhere to separately.
What you must do
- Review the updated Master Circular and replace the July 2007 version with this one for all branch authorisation processes.
- Ensure your bank's branch expansion proposals comply with instructions issued up to June 30, 2008 as consolidated in this circular.
- Foreign banks must specifically study and implement the guidance in paragraph 19 of the circular.
- Communicate the circular to relevant branch planning and compliance teams for immediate action.
Who it affects
All commercial banks excluding Regional Rural Banks, Foreign banks operating in India, Branch planning and compliance departments
Does this circular replace the earlier July 2007 Master Circular?
Yes, this updated circular consolidates instructions up to June 30, 2008 and supersedes the previous one dated July 2, 2007.
Are Regional Rural Banks covered under this circular?
No, the circular explicitly excludes RRBs from its scope.
What is the significance of paragraph 19 for foreign banks?
Foreign banks are specifically advised to be guided by paragraph 19 of this Master Circular, which contains provisions applicable only to them.