RBI Master Circular on Branch Licensing for RRBs (2013)
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/98 · issued 01 Jul 2013 · ~2 min read
Quick answerRBI updated its Master Circular on branch licensing for Regional Rural Banks, consolidating all instructions issued up to June 30, 2013. RRBs must seek prior RBI approval for new branches, shifts, or mergers, with Board-level policy oversight and streamlined application processes via NABARD.
What changed
The Master Circular was updated to incorporate all branch licensing instructions issued up to June 30, 2013, replacing the previous version dated July 2, 2012. Key updates include delegation of decision-making powers to RBI Regional Offices for branch openings, shifts, mergers, or conversions, without requiring Empowered Committee reference. The circular also clarifies that RRB Boards must approve branch policies, and sponsor bank approval is no longer needed for new branches.
What it means for you
For RRBs, this circular reinforces the need for Board-driven branch expansion strategies and prior RBI approval for any branch changes. The delegation to Regional Offices should speed up application processing, but selective scrutiny for Tier 1 centres remains. Banks must ensure compliance with Section 23 of the Banking Regulation Act, 1949, and coordinate with NABARD for applications.
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
Ensure Board approval for all branch opening, shifting, merger, or conversion proposals before applying to RBI.
Submit applications in Form VI (Rule 12) to the concerned RBI Regional Office via the respective NABARD Regional Office.
For shifting, merger, or conversion, also obtain approval from the sub-group of the District Consultative Committee.
Review internal control systems and business plans before proposing new branches, especially in Tier 1 centres.
Stay updated with the full Master Circular available on the RBI website for detailed annexures and procedures.
Who it affects
All Regional Rural Banks (RRBs), Sponsor banks of RRBs, NABARD (as commenting authority), RBI Regional Offices (processing applications)
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 14:11 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Do RRBs need sponsor bank approval for opening new branches?
No, separate approval of the sponsor bank is not required for opening new branches. However, Board approval of the RRB is mandatory.
What is the application process for opening a new branch?
RRBs must submit an application in Form VI (Rule 12) of the Banking Companies Rules, 1949 to the concerned RBI Regional Office through the respective NABARD Regional Office, which provides comments. An advance copy should also be sent to the RBI Regional Office.
Are there any special conditions for opening branches in Tier 1 centres?
Yes, RRBs require prior RBI approval for opening new branches in Tier 1 centres, and applications are considered on a very selective basis based on individual merits.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/98
RPCD.CO.RRB.No.BL.BC.8/03.05.90/2013-14
July 1, 2013
The Chairman
All Regional Rural Banks
Dear Sir,
Master Circular on Branch Licensing – Regional Rural Banks (RRBs)
Please refer to the Master Circular RPCD.CO.RRB.No.BL.BC.05/03.05.90/2012-13 dated July 2, 2012 consolidating instructions/guidelines issued to banks on Branch Licensing till June 30, 2012. The Master Circular has been suitably updated by incorporating the instructions issued upto June 30, 2013. A copy of the updated Master Circular is enclosed. The Master Circular has also been placed on the RBI website ( http://www.rbi.org.in )
Yours faithfully,
(A.Udgata)
Principal Chief General Manager
Master Circular on Branch Licensing – Regional Rural Banks (RRBs)
Index
1.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/98 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8184&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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