Home › Circulars › RBI/2010-11/283

RRB Branch Licensing Relaxed for Tier 3-6 Centres

Q: Which centres are covered under this relaxation?

Tier 3 to Tier 6 centres as per Census 2001, i.e., centres with population up to 49,999. Tier 3: 20,000-49,999; Tier 4: 10,000-19,999; Tier 5: 5,000-9,999; Tier 6: less than 5,000.

Q: What happens if an RRB does not meet the conditions?

Such RRBs must continue to seek prior permission from RBI or NABARD for branch openings, as was the practice before this circular.

Q: Is there a deadline for CBS compliance related to this?

Yes, after September 30, 2011, the liberalisation will be available only to RRBs that are fully CBS compliant.

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2010-11/283 · issued 18 Nov 2010 · ~2 min read

Quick answerRBI now allows Regional Rural Banks to open branches in Tier 3 to Tier 6 centres (population up to 49,999) without prior approval, provided they meet conditions: CRAR ≥9%, net NPA <5%, no CRR/SLR default in last year, and net profit in last financial year.

What changed

RBI liberalised branch licensing for RRBs, permitting them to open branches in Tier 3 to Tier 6 centres (population up to 49,999 as per Census 2001) without prior RBI permission, subject to reporting. This replaces the earlier requirement of case-by-case approval. The relaxation is conditional on the RRB meeting specific financial health criteria as per the latest inspection report.

What it means for you

For RRBs that meet the conditions, this reduces regulatory burden and speeds up branch expansion in smaller towns and rural areas. It encourages deeper financial inclusion in underserved centres. RRBs not meeting the criteria must still seek prior approval from RBI or NABARD. After September 30, 2011, only fully CBS-compliant RRBs will enjoy this liberalisation.

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

Check your RRB's latest inspection report to confirm CRAR ≥9%, net NPA <5%, no CRR/SLR default in last year, and net profit in last financial year.
If conditions are met, proceed to open branches in Tier 3-6 centres without prior RBI approval, but ensure proper reporting to RBI.
If conditions are not met, continue to approach RBI or NABARD for branch opening permissions as before.
Ensure full CBS compliance by September 30, 2011 to retain this liberalisation benefit beyond that date.

Who it affects

Regional Rural Banks (RRBs), NABARD, Rural and semi-urban banking customers

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 03:43 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which centres are covered under this relaxation?

Tier 3 to Tier 6 centres as per Census 2001, i.e., centres with population up to 49,999. Tier 3: 20,000-49,999; Tier 4: 10,000-19,999; Tier 5: 5,000-9,999; Tier 6: less than 5,000.

What happens if an RRB does not meet the conditions?

Such RRBs must continue to seek prior permission from RBI or NABARD for branch openings, as was the practice before this circular.

Is there a deadline for CBS compliance related to this?

Yes, after September 30, 2011, the liberalisation will be available only to RRBs that are fully CBS compliant.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #1587: RPCD.CO.RRB.BC.No.28/03.05.90-A/2010-11 — "Section 23 of the Banking Regulation Act, 1949 - Relaxations in Branch Licensing Policy" dated November 18, 2010”

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 668 kb ) Section 23 of the Banking Regulation Act, 1949- Relaxations in Branch Licensing Policy RBI/2010-11/283 RPCD.CO.RRB.BC No. 28/ 03.05.90-A/2010-11 November 18, 2010 The Chairmen All Regional Rural Banks Dear Sir, Section 23 of the Banking Regulation Act, 1949- Relaxations in Branch Licensing Policy A reference is invited to paragraph 80 of the Second Quarter Review of Monetary Policy for the Year 2010-11 ( extract enclosed – Annex I ) regarding the proposal to liberalise the extant Branch Licensing for Regional Rural Banks. 2. Accordingly, Reserve Bank of India hereby permits Regional Rural Banks to open branches in Tier 3 to Tier 6 centres (with population up to 49,999 as per Census 2001 – details of classification of centres tier-wise furnished in Annex II ) without having the need to take permission from Reserve Bank of India in each case, subject to reporting, provided they fulfil the following conditions as per the latest inspection report:- i) CRAR of at least 9%; ii) Net NPA less than 5%; iii) No default in CRR/SLR for the last year; iv) Net profit in the last financial year; 3. Other RRBs will have to continue to approach RBI/ NABARD as hitherto. As RRBs have to be fully CBS compliant by September 30, 2011, after that date, the liberalisation will be available only to such RRBs. 4. All other instructions contained in our Master circular RPCD.CO.RRB.BC No. 8/ 03.05.90-A/2010-11 dated July 1, 2010 , on Branch Licensing, remain unchanged. Yours faithfully, (B.P.Vijayendra) Chief General Manager Encls.: As above (02 sheets) Annex I Extract of Second Quarter Review of Monetary Policy 2010-11 Liberalisation in Branch Licensing of Regional Rural Banks 80. As part of further liberalisation of the extant branch licensing policy in respect of regional rural banks (RRBs), it is proposed: to allow RRBs to open branches in Tier 3 to Tier 6 centres as identified in the Census 2001 (with population up to 49,999) without prior authorisation of the Reserve Bank, subject to their fulfilling certain conditions. Annex II Details of tier-wise classification of centres based on population (i) Classification of centres(tier-wise) Population(as per 2001 Census) Tier 1 - 1,00,000 and above Tier 2- 50,000 to 99,999 Tier 3- 20,000 to 49,999 Tier 4- 10,000 to 19,999 Tier 5- 5,000 to 9,999 Tier 6- Less than 5000 (ii) Population-group wise classification of centres Rural Centre Population upto 9,999 Semi-urban centre from 10,000 to 99,999 Urban centre from 1,00,000 to 9,99,999 Metropolitan centre 10,00,000 and above 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/283 · issued 18 Nov 2010. The plain-English explanation above is BankPulse’s own independent summary.

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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=6109&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.