RBI modifies master circular on branch licencing of RRBs

Mumbai, Sep 21 (UNI) The Reserve Bank of India (RBI) has modified the master circular on branch licencing of Regional Rural Banks (RRB) in the country.

The apex bank today notified the RRBs in the matter of branch opening, shifting, merger and conversion and asked to follow the instructions.

Regardig the relocation of the existing as well as proposed branches in the rural centers, RBI said the shifting of branches in rural centres may be effected by RRBs themselves without obtaining its prior approval.

''The relocated branch would be able to cater adequately to the banking needs of the villages served by the existing branch,'' it said.

The central bank further instructed that RRBs may shift their branches at semi-urban centres within the same locality/municipal ward without the prior approval of RBI. However, it should be ensured that the locality or ward is not rendered unbanked due to the shifting of branches.

It also suggested the merger of loss-making branches of RRBs, where two loss-making branches are in close proximity to each other, within a distance of about 5 km.

''They may consider merging the two branches with a view to rationalising the spatial spread and reducing establishment and operating costs,'' RBI added.

UNI