Master Circular on Area of Operation, Branch Authorisation Policy, Opening/Upgradation of Extension Counters, ATMs and Shifting/Splitting/Closure of Offices - UCBs (2009)

What changed

This is an annual consolidation of existing instructions, not a new policy. It updates the previous master circular dated July 1, 2008, by incorporating all instructions issued up to June 30, 2009. The structure and key provisions remain largely unchanged from the earlier version.

What it means for you

For UCBs, this circular reaffirms the regulatory framework for branch expansion, including eligibility criteria, approval processes, and compliance requirements. Banks must continue to follow the prescribed norms for opening branches, extension counters, and ATMs, and adhere to the shifting/closure guidelines. The circular also reiterates penalties for submitting wrong information to RBI.

What banks were required to do at the time

• Acknowledge receipt of this master circular to your respective Regional Office of RBI's Urban Banks Department.
• Review and align your bank's branch expansion plans with the eligibility criteria and procedural guidelines outlined in the circular.
• Ensure all branch openings, extension counters, ATMs, and office shifts/closure comply with the authorisation policy and reporting requirements.
• Submit quarterly Branch Banking Statistics returns as specified in the circular.
• Maintain board resolutions and proper documentation for all branch-related actions.

Who it affects

All Primary (Urban) Co-operative Banks (UCBs), Multi-State UCBs, Salary Earners' Banks, UCBs categorised as Grade III/IV