Reserve Bank of India (Commercial Banks - Branch Authorisation) Directions, 2025

1. Board monitors banking outlets

The Board must run off-site and on-site monitoring of every banking outlet.

2. Set inclusion targets

The Board must set internal targets for financial inclusion.

3. Review digital banking units

The Board must review the progress of digital banking services and units at set intervals.

4. Board approves BC policy

The Board must approve the policy for engaging business correspondents.

5. Doorstep banking reviewed

Doorstep banking must be reviewed every half year in the first year, then yearly.

6. Start date

This rule takes effect immediately.

7. Who is covered

This rule applies to commercial banks, called 'banks' here.

8. Meaning of Commercial Banks

This means all banks except small finance banks, payment banks and local area banks.

BankPulse example. The word banks on this page has a narrow meaning. It covers banking companies, the corresponding new banks and the State Bank of India. It leaves out small finance banks, payment banks and local area banks.

9. Board-approved outlet policies

Banks need separate board-approved policies for opening and running outlets.

1. 25 percent rural rule

At least 25% of new outlets each year must open in unbanked rural areas.

2. Two-year carry forward

Banks can carry forward extra rural outlets opened beyond target for two years.

3. No shifting for three years

A branch cannot be part shifted within three years of its opening.

4. New premises no larger

The new premises for part shifting must not be bigger than the existing premises.

5. Report call centre changes

Opening, closing and shifting of call centres must be reported to the Reserve Bank.

6. PRAVAAH portal filing

Banks must file branch approval requests through the PRAVAAH portal.

7. Foreign banks bring capital

A foreign bank must bring assigned capital of US$25 million before its first Indian branch.

8. Two hundred fifty metres

The new part shifted location must be within 250 metres of the existing one.

9. SEZ machines take rupees

An ATM in a special economic zone must deal only in Indian rupees.

10. One-year opening window

Banks get one financial year to open a promised rural outlet.

11. Government business needs approval

Government business at a banking outlet needs prior approval of the government authority concerned.

12. Foreign subsidiaries included

These branch rules also apply to foreign banks' wholly owned Indian units.

13. Closure approval rule

Closing a rural or a lone semi-urban outlet needs district committee approval.

14. Shift only downwards

A banking outlet may be shifted only within the same or a smaller population centre.

15. Lost general permission

Banks that lost general permission need RBI approval for every new branch.

16. Mobile branches are different

A mobile branch is not counted as a banking outlet.

17. Foreign banks stand outside

General permission to open branches does not apply to a foreign bank in branch mode.

18. One part shift yearly

Only one branch per metropolitan centre or state capital may be part shifted in a year.

1. CISBI portal reporting

Banks must report all DBU changes to RBI through the CISBI portal.

1. Older rules cancelled

This document cancels the earlier conduct rules for these institutions.

2. Earlier repeals stand

Rules already cancelled before this notification remain cancelled.

3. Old rules stay repealed

Rules repealed before this document was issued remain repealed.

4. Old actions preserved

Anything already done under the old rules stays governed by those old rules.

5. Approvals carried over

Approvals given under the cancelled rules are now treated as given under these rules.

6. Other laws still apply

These Directions add to other laws. They do not replace any of them.

7. RBI's reading final

RBI's interpretation of any part of these Directions is final and binding.