Master Circular on Urban Co-op Bank Branch & ATM Policy

What changed

This master circular updates and consolidates all previous guidelines on branch authorisation, area of operation, extension counters, ATMs, and shifting/splitting/closure of offices for urban co-operative banks. It replaces the earlier master circular dated July 1, 2011, incorporating instructions issued up to June 30, 2012.

What it means for you

Urban co-operative banks must follow the consolidated framework for branch expansion, ATM deployment, and office relocation. The circular clarifies eligibility criteria, approval processes, and reporting requirements, ensuring uniformity and compliance. Banks need to align their annual business plans with these guidelines to avoid penal action.

What banks were required to do at the time

• Review and update your bank's branch expansion and ATM deployment plans to align with the consolidated guidelines.
• Ensure all new branch openings, extension counters, and ATM installations follow the prescribed eligibility criteria and approval process.
• Submit quarterly branch banking statistics returns as required under Section 10 of the circular.
• Verify that any shifting, splitting, or closure of offices complies with the norms for financially sound and well-managed (FSWM) banks.
• Maintain accurate records and avoid submitting incorrect information to prevent penalty provisions.

Who it affects

All Primary (Urban) Co-operative Banks, Salary Earners' Banks, Multi-State Urban Co-operative Banks