What changed
The Government of India reduced the number of LWE-affected districts from 90 to 70. RBI has updated its branch authorisation policy accordingly, replacing the earlier list issued in June 2018. The revised list is effective from the date of this circular.
What it means for you
Banks can now open branches more freely in the 20 districts removed from the list, as they no longer qualify for relaxed norms. For the remaining 70 districts, the existing relaxed branch authorisation policy continues to apply. This change may affect branch expansion strategies in states like Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal.
What you must do
- Update internal branch authorisation systems with the new list of 70 LWE-affected districts.
- Review branch expansion plans to align with the revised list, especially for districts removed from the list.
- Ensure compliance with relaxed branch opening norms only for the 70 districts listed in the annexure.
- Communicate the revised list to relevant branch planning and compliance teams.
Who it affects
All Domestic Scheduled Commercial Banks (excluding RRBs, Payments Banks, and LABs), Branch planning and compliance departments, Banks with operations in LWE-affected states
What is the effective date of the revised LWE district list?
The revised list is effective from August 22, 2022, the date of the circular.
How many districts are now classified as LWE-affected?
The list has been reduced from 90 to 70 districts.
Which states are included in the revised list?
The list includes districts from Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal.