What changed
Earlier, amalgamated RRBs with 75+ branches could open one RO per 50 branches, while standalone RRBs with 50+ branches could open one RO per 25 branches. This distinction has been removed. Now, all RRBs (both amalgamated and standalone) are allowed one RO for every 50 branches. RRBs with up to 50 branches will be directly controlled by Head Office without any intermediate tier.
What it means for you
This simplifies the branch licensing policy for RRBs, creating a uniform standard for all. Larger RRBs may need to consolidate or adjust their RO structure, while smaller RRBs (under 50 branches) will have a flatter hierarchy. The change could reduce operational costs for some RRBs but may require restructuring for those previously allowed more ROs.
What you must do
- Review your current RO count against the new 1:50 branch ratio and plan any necessary closures or adjustments.
- For RRBs with up to 50 branches, ensure Head Office directly manages all branches without an intermediate tier.
- If you need relaxation due to geographical or other conditions, submit a case to the State Level Empowered Committee for consideration.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Amalgamated RRBs with 75+ branches, Standalone RRBs with 50+ branches, RRBs with up to 50 branches
What is the new norm for opening Regional Offices by RRBs?
All RRBs, whether amalgamated or standalone, can now open one Regional Office for every 50 branches. RRBs with up to 50 branches will be directly under Head Office control.
What if my RRB needs more ROs due to geographical challenges?
You can request relaxation by submitting your case to the State Level Empowered Committee of RBI, which will examine and refer it to the concerned department for consideration.
When does this change take effect?
The instructions came into effect immediately from the date of the circular, February 5, 2010.