No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-2009/285 · issued 17 Nov 2008 · ~1 min read
Quick answerRBI eased branch licensing for RRBs: profitable RRBs with improving net worth and net NPA ≤8% can open new branches, provided no SLR/CRR default in last two years.
What changed
RBI modified conditions for RRBs to open new branches, as announced in the Mid-Term Review of Annual Policy 2008-09. Previously restrictive branch licensing norms were relaxed for RRBs that are profitable and show financial improvement. The key change: RRBs must now meet specific eligibility criteria instead of facing blanket restrictions.
What it means for you
Profitable RRBs with clean compliance records get more freedom to expand their branch network. This supports financial inclusion by allowing stronger RRBs to reach unbanked areas. Banks must track their net NPA ratio (≤8%) and ensure no SLR/CRR defaults to qualify.
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
Verify your RRB's SLR/CRR compliance history for the last two years before applying for new branches.
Monitor net NPA ratio to ensure it stays at or below 8%.
Document improvement in net worth and operational profitability to support branch expansion proposals.
Refer to Master Circular RPCD.CO.RRB.No.BL.BC.07/03.05.90-A/2008-09 for full details.
Who it affects
Regional Rural Banks (RRBs), RBI's Rural Planning and Credit Department (RPCD), Bank branch licensing teams
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 are the exact conditions for an RRB to open new branches under this circular?
The RRB must not have defaulted on SLR or CRR in the last two years, must be making operational profits, show improvement in net worth, and have a net NPA ratio not exceeding 8%.
Does this circular replace the earlier Master Circular on RRB branch licensing?
No, it modifies the conditions in paragraph 1.2 of the Master Circular dated July 1, 2008 (RPCD.CO.RRB.No.BL.BC.07/03.05.90-A/2008-09). The Master Circular remains the base document.
When was this policy announced?
The policy was announced in paragraph 162 of the Mid-Term Review of Annual Policy for 2008-09 on October 24, 2008, and the circular was issued on November 17, 2008.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “in modification of the directive RPCD.CO.RRB.Dir.No.62/03.05.33(C)/2008-09 dated November 17, 2008”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2037: RPCD.CO.RRB.BC.No.61/03.05.90-A/2008-09 — "Mid-Term Review of Annual Policy for the Year 2008-09 Branch Licensing - Regional Rural Banks - Further Liberalisat”
📜 Read the original circular — full text as issued by RBI
RBI/2008-2009/285
RPCD.CO.RRB.BC. No.61 /03.05.90-A /2008-09
November 17, 2008
All Regional Rural Banks
Dear Sir,
Mid-Term Review of annual policy for the year 2008-09
Branch Licensing – Regional Rural Banks-
Further Liberalisation-Conditions for opening of new branches
Please refer to our Master Circular on Branch Licensing - Regional Rural Banks (RRBs) RPCD.CO.RRB.No.BL.BC.07 /03.05.90-A/2008-09 (RBI/2008-09/36) July 1, 2008 .
Pursuant to the announcement made in paragraph 162 of the Mid -Term Review of Annual Policy for the year 2008-09 dated October 24, 2008 (copy of the extract enclosed) on the captioned subject, it has been decided to allow RRBs greater flexibility in opening new branches as long as they are making profits and their financials are improving.
Accordingly, the conditions for opening of new branches for RRBs mentioned in paragraph 1.2 of our Master Circular RPCD.CO.RRB.No.BL.BC.07/03.05.90-A/2008-09 (RBI/2008-09/36) dated July 1, 2008 have been modified.
RRB should fulfill the following conditions to become eligible for opening of new branch/es.
i) It should not have defaulted in maintenance of SLR and CRR during the last two years.
ii) The RRB should be making operational profits, its net worth should show improvement and its net NPA ratio should not exceed 8 per cent.
Yours faithfully,
(G.Srinivasan)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/285 · issued 17 Nov 2008. 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=4653&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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