Reserve Bank of India (Commercial Banks - Branch Authorisation) Directions, 2025
UR
- Applies toCommercial banks
- StatusIn force
- RBI text changedRBI updated this document on October 01, 2026. BankPulse is re-reading it. BankPulse checked 35 points against RBI's new text on 2 October 2026. 31 stand. 4 are marked below and are being re-read.
- IssuedNovember 28, 2025
- Amendmentsnone tracked
- Length35 points in 5 sections · 3 min read
The four dates on this rule
- PublishedNovember 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNovember 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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Chapter I. Preliminary
Do it
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.
Background
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.
Chapter III. Banking Outlet Authorisation
Must know
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.
Do it
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.
Background
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.
Chapter VII. Information Reporting
1. CISBI portal reporting
Banks must report all DBU changes to RBI through the CISBI portal.
Chapter VIII. Repeal and Other Provisions
Background
1. Older rules repealed
This document repeals RBI's earlier instructions on branch authorisation for commercial banks.
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.
The same subject for other kinds of institution
The same subject for other kinds of institution.
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