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.
What you must do
- Submit branch applications to the concerned RBI Regional Office through the respective NABARD Regional Office with an advance copy to RBI.
- Ensure NABARD provides its comments on the merits of each application.
- Continue to obtain sub-group of DCC approval for shifting, merger, or conversion of branches.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), NABARD Regional Offices, RBI Regional Offices, State Governments (may be consulted)
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.