Source: Reserve Bank of India · RBI/2009-10/63 · issued 01 Jul 2009 · ~2 min read
Quick answerRBI updated its Master Circular on Branch Authorisation under Section 23 of the Banking Regulation Act, 1949, consolidating all instructions issued up to June 30, 2009. This circular governs how commercial banks (excluding RRBs) open, shift, merge, or close branches in India.
What changed
The previous Master Circular dated July 1, 2008 was updated to include instructions issued up to June 30, 2009. The updated circular consolidates all existing guidelines on branch authorisation, including procedures for opening, shifting, merging, and closing branches, as well as setting up off-site ATMs and other facilities.
What it means for you
Banks must follow the updated consolidated guidelines for all branch-related actions, ensuring compliance with Section 23 of the Banking Regulation Act. The circular provides a single reference point for branch authorisation, reducing ambiguity and streamlining regulatory compliance. Foreign banks are specifically guided by paragraph 20 of this circular.
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 updated Master Circular and ensure your bank's branch expansion plans align with the consolidated guidelines.
Submit annual branch expansion plans using the prescribed formats (Annex 3D) for underbanked and other districts.
Follow the specific procedures for shifting, merging, or closing branches, especially for rural branches, as detailed in the circular.
Ensure off-site ATMs are set up only under the general permission conditions listed in Annex 11.
Who it affects
All commercial banks (excluding RRBs), Local Area Banks, Foreign banks operating in India
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the purpose of this Master Circular?
It provides a framework of rules, regulations, and procedures for banks to follow when opening, shifting, or closing branches in India, as per Section 23 of the Banking Regulation Act, 1949.
Does this circular apply to foreign banks?
Yes, foreign banks are guided by paragraph 20 of this Master Circular, which contains specific instructions for them.
What are underbanked districts and how are they relevant?
Underbanked districts are listed in Annex 4 of the circular. Banks must submit branch expansion plans with state-wise and population group-wise data for underbanked and other districts, as per Annex 3D.
📜 This document’s life story (3 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to the Master Circular DBOD.No. BL.BC.20/22.01.001/2009-10 dated July 1, 2009 consolidating instructions/ guidelines issued to banks on Branch Authorisation till June 30, 2009.”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1860: DBOD.No.BL.BC.20/22.01.001/2009-10 — "Section 23 of Banking Regulation Act, 1949 - Master Circular on Branch Authorisation" dated July 1, 2009”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/63
DBOD.No. BL.BC. 20 /22.01.001/2009-10
July 1, 2009
Ashadha 9, 1931(Saka)
All Commercial Banks
(excluding RRBs)
Dear Sir,
Section 23 of Banking Regulation Act, 1949 – Master Circular on Branch Authorisation
Please refer to the Master Circular DBOD.No.BL.BC.21/22.01.001 / 2008-09 dated July 1, 2008 consolidating instructions / guidelines issued to banks on Branch Authorisation till June 30, 2008. The Master Circular has been suitably updated by incorporating the instructions issued upto June 30, 2009. A copy of the updated Master Circular is enclosed. The Master Circular has also been placed on the RBI website ( http://www.rbi.org.in ).
2. Foreign banks may be guided by paragraph 20 of this Master Circular.
Yours faithfully,
( P. Vijaya Bhaskar)
Chief General Manager-in-Charge
Encls. : as above
TABLE OF CONTENTS
Paragraph No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/63 · issued 01 Jul 2009. 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 03 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=5108&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.