HomeCirculars › RBI/2012-13/157

RRB Branch Licensing: RBI Delegates Powers to Regional Offices

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/157 · issued 01 Aug 2012 · ~1 min read
Quick answerRBI has delegated powers to its Regional Offices to decide on RRB branch applications (opening, shifting, merger, conversion) without needing Empowered Committee recommendations, speeding up approvals.

What changed

Earlier, RRB branch applications were reviewed by the Empowered Committee at RBI Regional Offices before a decision. Now, RBI Regional Offices can directly decide on these applications without EC reference. Applications must still be submitted through NABARD, which provides comments, and an advance copy goes to the concerned RBI Regional Office.

What it means for you

This delegation cuts a layer of deliberation, likely reducing turnaround time for branch licensing decisions. RRBs can expect faster approvals, but RBI Regional Offices may consult state governments if needed. The sub-group of DCC approval remains mandatory for shifting, merger, and conversion.

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

Who it affects

Regional Rural Banks (RRBs), NABARD Regional Offices, RBI Regional Offices, State Governments (may be consulted)

❓ Common questions

Regulatory timeline

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

Do we still need to submit applications through NABARD?

Yes, applications must be submitted to the concerned RBI Regional Office through the respective NABARD Regional Office, which will give its comments on the merits.

Is the Empowered Committee completely removed from the process?

The circular delegates decision-making to RBI Regional Offices without reference to the Empowered Committee, but the committee is not abolished; it is just bypassed for these applications.

Does this change affect the requirement for DCC sub-group approval?

No, the sub-group of the District Consultative Committee approval is still required for shifting, merger, and conversion of branches.

📜 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 #1246: RPCD.CO.RRB.BL.BC.No.18/03.05.90/2011-12 — "Simplification of the Procedure for Branch Licensing" dated August 1, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/157 RPCD.CO.RRB.BL.BC.No.18 /03.05.90/2012-13 August 1, 2012 All Regional Rural Banks Dear Sir, Simplification of the Procedure for Branch Licensing Please refer to our circular RPCD.CO.RRB.BL.BC.No.90/03.05.90-A/2011-12 dated June 13, 2006 , liberalising and simplifying the procedure for opening, shifting or merger of branches. 2. As per extant general policy on branch licensing the applications for opening, shifting, merger or conversion of branches, have to be submitted by Regional Rural Banks (RRBs) to the respective Regional Office of NABARD with an advance copy to the concerned Regional Office of Reserve Bank of India. The Empowered Committee (EC) on RRBs constituted by the Reserve Bank at its Regional Offices deliberates and makes recommendations on such applications. The Reserve Bank takes into account the EC's recommendations and disposes off the applications. 3. In order to expedite the process of disposal of applications it has been decided to delegate powers to the Regional Offices of the Reserve Bank to take a decision on the applications of RRBs for opening, shifting, merger or conversion of branches without reference to the concerned Empowered Committees. RRBs may continue to submit applications to the concerned Regional Office of the Reserve Bank, through the respective Regional Office of NABARD which will give its comments on the merits of the application, with an advance copy being forwarded to the concerned Regional Office of the Reserve Bank. If required, the Regional Offices of the Reserve Bank may consult the concerned State Government. The approval of the sub-group of the District Consultative Committee (DCC) will be required, as hitherto, for shifting, merger and conversion of branches. 4. All other instructions remain unchanged. 5. Please acknowledge receipt to our respective Regional Office. Yours faithfully, (C.D.Srinivasan) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/157 · issued 01 Aug 2012. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7489&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.
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