Reserve Bank of India (Regional Rural Banks – Branch Authorisation) Directions, 2025
UR
- Applies toRegional rural banks
- StatusIn force
- IssuedNov 28, 2025
- Amendmentsnone tracked
- Length37 points in 5 sections · 4 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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Numbers to remember
| four hours | A banking outlet serves customers at a fixed point for at least four hours a day, five days a week. RBI Para 4(3) |
| nine percent | The application is considered only with capital of nine percent, net bad loans within five percent, and a clean record. RBI Para 9(1) |
| two years | There must be no default in the cash and liquidity reserves for two years. The bank must have made a net profit last year. RBI Para 9(3) |
| seven days | The report of a new rural outlet reaches RBI's regional office within seven days of opening. RBI Para 10 |
| 25 percent | Town openings this year are allowed only if the bank met its 25 percent unbanked rural target the previous year. RBI Para 10(1) |
| one month | A change of office address reaches RBI's regional office within one month of shifting. RBI Para 27 |
| 30 days | A complainant unanswered for 30 days, or unsatisfied, may approach the RBI Ombudsman. RBI Para 64 |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
1. What counts as an outlet
A banking outlet serves customers at a fixed point for at least four hours a day, five days a week.
2. In force on issue
These directions took effect from the date of their issue.
3. Who is covered
These Directions apply to regional rural banks.
Chapter III. Branch Authorisation
Must know
1. Five conditions to qualify
The application is considered only with capital of nine percent, net bad loans within five percent, and a clean record.
2. No reserve defaults
There must be no default in the cash and liquidity reserves for two years. The bank must have made a net profit last year.
3. Seven days to report
The report of a new rural outlet reaches RBI's regional office within seven days of opening.
4. Earn the town first
Town openings this year are allowed only if the bank met its 25 percent unbanked rural target the previous year.
5. Miss the target, lose towns
Miss the 25 percent duty in a year, and the bank may not open in Tier 1 to 4 centres.
6. A quarter for the unbanked
At least 25 percent of outlets opened in a year must be in unbanked rural centres.
7. Part time counts pro rata
A part time outlet counts in the 25 percent sum in proportion to its hours.
8. Moves go down, not up
Outlets may shift only within the same or a smaller population category, never upward.
9. One month to tell RBI
A change of office address reaches RBI's regional office within one month of shifting.
10. No customers in back offices
Back offices need the regional office's permission, serve no customers, and can never become branches.
11. Two years to use it
An authorisation stays valid for a maximum period of two years.
Do it
12. Full computerisation first
All branches and the head office must be on core banking, with system generated recognition of bad loans.
13. The licence on the wall
The licence must be displayed in the branch for customers to see that the branch is authorised.
Background
14. Towns need approval
Opening an outlet in a Tier 1 to 4 centre needs RBI's prior approval through the PRAVAAH portal.
15. Villages are open
Tier 5 and 6 rural centres carry general permission. The bank opens first and reports after.
16. An automatic village licence
For rural openings the regional office issues the licence post facto, automatically.
17. A committee watches
RBI's regional office, through the Empowered Committee, monitors every opening, closing, shifting and merger.
18. Rural closures need consent
Closing, merging or moving a rural or sole semi urban outlet needs the district committee and RBI's regional office.
19. A yearly plan with NABARD
The yearly outlet expansion plan goes to RBI's regional office with the board's approval and NABARD's recommendation.
20. A bank on wheels
A mobile branch is a protected van with two or three bank officials, books and a cash safe, visiting on fixed days.
21. One office per fifty
The bank may open one regional office for every 50 banking outlets, with a licence taken before it opens.
22. Fifty run from head office
A bank with up to 50 outlets runs them straight from the head office, with no middle tier.
23. Offices move freely
Administrative offices may shift, close or merge at the bank's discretion, without RBI's prior approval.
24. ATMs anywhere
The bank may set up ATMs at places it chooses; they are not banking outlets.
Chapter IV. Business Facilitator / Business Correspondent Model
Must know
1. Agents charge nothing
An agent may never charge the customer directly. Only the bank may levy open, stated charges.
2. Thirty days, then Ombudsman
A complainant unanswered for 30 days, or unsatisfied, may approach the RBI Ombudsman.
BankPulse example. A complaint reaches the bank on 1 September. If no reply has come by 1 October, that is 30 days. The complainant may then go to the RBI Ombudsman.
Do it
3. Credit rules apply too
Agent lending work must follow the credit facilities Directions for regional rural banks.
4. Offline allowed, booked daily
Agents may do offline transactions, and every one must reach the bank's books by the end of the day.
Background
5. Agents extend the bank
The bank may serve customers through business facilitators and correspondents for wider inclusion.
6. The bank answers for agents
The bank is fully responsible for the actions of its correspondents and their outlets.
7. Introduced to the village
Bank officials introduce the agent to the public in a meeting with village elders, so nobody is impersonated.
Chapter V. Information Reporting
1. Reported within a week
Opening, closing, merging or shifting any outlet is reported through the CISBI portal within one week.
Chapter VI. Repeal and other Provisions
1. Old guidance repealed
The earlier branch authorisation guidance for regional rural banks stands repealed.
2. Old actions stay governed
Action already taken under the old rules stays governed by them.
The same subject for other kinds of institution
The same subject for other kinds of institution.
Other RBI rules for regional rural banks
RBI credit bureau reporting rules for regional rural banks 2025
RBI credit card and debit card rules for regional rural banks 2025
RBI customer service and fair conduct rules for regional rural banks 2025
RBI deposit interest rate rules for regional rural banks 2025
RBI digital banking channel rules for regional rural banks 2025
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