What changed
This master circular consolidates and updates all prior instructions on area of operation, branch authorisation policy, opening/upgradation of extension counters, ATMs, and shifting/splitting/closure of offices for urban co-operative banks. It replaces the July 1, 2010 master circular and covers guidelines up to June 30, 2011.
What it means for you
Urban co-operative banks must follow the consolidated eligibility criteria and procedural guidelines for expanding their branch network and ATMs. The circular clarifies rules for extending area of operation within and beyond the state, and sets norms for shifting or closing offices. Banks need to align their annual business plans with these updated requirements.
What you must do
- Review the consolidated guidelines on area of operation and branch authorisation to ensure compliance.
- Update your annual business plan for branch/ATM expansion as per the eligibility criteria and centre selection norms.
- Submit quarterly branch banking statistics returns to RBI as specified in the circular.
- Ensure all extension counters and ATMs meet the prescribed norms and obtain necessary authorisations.
- Follow the procedural guidelines for shifting, splitting, or closing any office or extension counter.
Who it affects
Primary (Urban) Co-operative Banks, Multi-State Urban Co-operative Banks, Salary Earners' Banks
What is the validity period for branch authorisation under this circular?
The circular specifies a validity period for authorisation to open new places of business; banks must open branches within this period or seek revalidation.
Can a unit bank open a branch at a higher category centre?
Yes, but only if it meets the eligibility criteria outlined in the authorisation policy for unit banks desiring to open a general category branch.
What are the penalties for submitting incorrect information?
The circular includes penal provisions for submission of wrong information, which may include rejection of applications or other regulatory actions.