Section 23 of Banking Regulation Act, 1949- Relaxations in Branch Licensing Policy

RPCD.CO.RRB.BC No. 56/ 03.05.90-A/2010-11

March 29, 2011

The Chairmen
All Regional Rural Banks

Dear Sir,

Section 23 of Banking Regulation Act, 1949- Relaxations in
Branch Licensing Policy

Please refer to our circular RPCD.CO.RRB.BC No. 28/ 03.05.90-A/2010-11 dated November 18, 2010 on the captioned subject.

.2. In this connection, we further advise that the RRBs eligible to open branches in Tier 3 to Tier 6 centres may do so without prior approval of RBI and approach the Regional Office of RBI for, post-facto automatic, issue of the licence/s. The licence should be displayed in the premise of the branch so opened for information of its customers/ public to instill confidence in them that the bank branch is authorized to conduct banking business.

3. The details of the branches thus opened should be reported, in the format annexed, to the concerned Regional Office of RBI, the first such report being as on the quarter ended March, 2011.

Yours faithfully,

(B.P.Vijayendra)
Chief General Manager

Encl.: As above (01 sheet)

____________________________________________________

Annex

Name of the Regional Rural Bank:

Report of branches opened in Tier 3-6 Centres without prior approval of RBI
consequent to relaxations- Status as at the end of quarter _________ 2011.

Signature:   ________________
Name:         ________________
Designation:________________

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