What changed
RBI replaced the earlier Annex-3(E) format with a revised version that banks must use when submitting their ABEP. The revision expands the scope of information required, including medium-term branch expansion policy, technology adoption, financial inclusion measures, customer service quality, and priority sector lending details.
What it means for you
Banks now need to provide more granular data on their branch expansion strategy, especially tier-wise plans and expected business growth over three years. The enhanced focus on financial inclusion metrics, BC model functioning, and customer complaint data signals RBI's intent to link branch authorisation more tightly with inclusive banking and service quality. Lenders must strengthen internal systems to capture and report these additional parameters accurately.
What you must do
- Update your ABEP submission process to use the revised Annex-3(E) format immediately.
- Prepare detailed medium-term (3-year) branch expansion plans with tier-wise breakups and percentage increases.
- Compile comprehensive data on financial inclusion initiatives, including BC model details, multilingual website status, SHG linkages, and ICT-enabled tools.
- Collate last three years' statistics on Basic Savings Bank Accounts, overdrafts, and smart cards per branch.
- Review and document customer complaint trends, priority sector lending ratios, and operational risk measures for submission.
Who it affects
All Domestic Scheduled Commercial Banks (excluding RRBs), Branch expansion planning teams, Financial inclusion and priority sector lending departments, Customer service and compliance teams
What is the key change in the revised Annex-3(E)?
The revised format requires banks to provide a medium-term (3-year) branch expansion policy with tier-wise details, expected business growth, technology implementation status, and more detailed financial inclusion metrics, including BC model functioning and multilingual website availability.
When should banks start using the new Annex-3(E)?
Banks must use the revised Annex-3(E) for all future Annual Branch Expansion Plan (ABEP) submissions from the date of this circular (March 4, 2013).
Does this circular affect branch authorisation decisions?
Yes, RBI explicitly states that branch authorisation will be based on a critical assessment of a bank's performance in financial inclusion, priority sector lending, and customer service, using the information provided in the revised Annex-3(E).