Master Circular on Urban Co-op Bank Branch Expansion & ATMs

What changed

This master circular updates and consolidates all prior instructions on branch authorisation, extension counters, ATMs, and office relocation/closure for urban co-operative banks up to June 30, 2013. It supersedes the July 2, 2012 master circular on the same subject.

What it means for you

Urban co-operative banks must now follow the consolidated framework for expanding their area of operation, opening branches, setting up ATMs, and shifting or closing offices. The circular provides clear eligibility criteria and procedural steps, ensuring compliance with RBI's authorisation policy. Banks not categorised as financially sound and well managed face additional restrictions on shifting or acquiring premises.

What banks were required to do at the time

• Review the consolidated guidelines to ensure your bank's expansion plans align with the updated authorisation policy.
• Submit annual business plans for new branches/centres as per the prescribed list and approval process.
• Ensure all extension counters and ATMs meet the eligibility criteria and procedural requirements before opening.
• Follow the specific reporting and application formats for shifting, splitting, or closing any office or branch.
• Verify that your bank's classification (FSWM or not) is correctly applied when seeking permissions for premises changes.

Who it affects

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