This Reserve Bank of India (RBI) circular, reference number RBI201617320 FIDD.CO.LBS.BC.No 3102.02.01.001/2016-17 dated June 8, 2017, addresses the need to align the roadmap for banking services in unbanked villages with populations exceeding 5000 with the revised Branch Authorisation Policy. It refers to earlier instructions (circular FIDD.CO.LBS.BC.No.8202.01.001/2015-16 dated December 31, 2015) which directed State Level Bankers' Committees (SLBCs) to identify and allocate villages fitting this criteria to scheduled commercial banks, including Regional Rural Banks, for the purpose of establishing brick and mortar branches.
The circular highlights the updated guidelines on Banking Outlets issued on May 18, 2017 (DBR.No.BAPD.BC.69/22.01.001/2016-17), which aim to facilitate financial inclusion and provide banks with greater flexibility in choosing their delivery channels.
SLBC Convenor banks are instructed to review and identify Unbanked Rural Centres (URCs) in villages with populations above 5000, considering the revised branch authorization policy, and ensure these URCs are banked through CBS-enabled banking outlets. Confirmation that all such URCs have been banked was requested to be furnished to the respective Regional Office of the Financial Inclusion and Development Department (FIDD) of the RBI by December 31, 2017.
The circular was issued by Ajay Kumar Misra, Chief General Manager, Financial Inclusion Development Department, Central Office, Reserve Bank of India. The Central Office is located on the 10th Floor, Central Office Building, Shahid Bhagat Singh Marg, P.B.No.10014, Mumbai – 400001. Contact can be made via telephone at 022-22601000/9122-22621011/22610943/22610948, or via email at cgmincfidd@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, which issued the circular.
SLBC Convenor Banks: State Level Bankers' Committee Convenor Banks, responsible for coordinating banking activities at the state level.
Branch Authorisation Policy: A policy that provides guidelines for banks on opening new branches.
Regional Rural Banks: Scheduled commercial banks with a regional focus.
Banking Outlets: Delivery channels used by banks to provide financial services.
Unbanked Rural Centres (URCs): Rural areas without access to banking services.
Financial Inclusion and Development Department of Reserve Bank of India: A department within the Reserve Bank of India responsible for promoting financial inclusion.
Ajay Kumar Misra: Chief General Manager of Financial Inclusion Development Dept, Reserve Bank of India
RBI/2016-17/320
FIDD.CO.LBS.BC.No 31/02.01.001/2016-17 June 8, 2017
The Chairman and Managing Director/ Chief Executive Officer
SLBC Convenor Banks
Dear Sir,
Aligning roadmap for unbanked villages having population more than 5000 with
revised guidelines on Branch Authorisation Policy
Please refer to the circular FIDD.CO.LBS.BC.No.82/02.01.001/2015-16 dated December 31,
2015 wherein SLBCs were advised to identify villages with population above 5000 without a
bank branch of a scheduled commercial bank in their State and allot these villages among
scheduled commercial banks (including Regional Rural Banks) for opening brick and mortar
branches.
2. In this connection, we draw your attention to the circular
DBR.No.BAPD.BC.69/22.01.001/2016-17 dated May 18, 2017 on ‘Rationalisation of Branch
Authorisation Policy - Revision of Guidelines’ wherein final guidelines on ‘Banking Outlets’
have been issued with a view to facilitate financial inclusion as also to provide flexibility to
banks on the choice of delivery channel.
3. In the circumstances, SLBC Convenor banks are advised to review and identify the
unbanked rural centres (URCs) in villages with population above 5000, in light of the revised
guidelines on rationalisation of branch authorisation policy and ensure that such unbanked
rural centres in villages with population above 5000, if any, are banked forthwith by opening
of CBS enabled banking outlet. A confirmation stating that all unbanked rural centres in
villages with population above 5000 have been banked, may be furnished to the respective
Regional Office of Financial Inclusion and Development Department of Reserve Bank of India
latest by December 31, 2017.
Yours faithfully,
(Ajay Kumar Misra)
Chief General Manager
�वत् तीय समावेशन और �वकास �वभाग, केन्द्र�य कायार्लय,10 वी मंिजल, क�द्र�य कायालर् य भवन, शह�द भगत�सहं माग,र्पोस्ट बॉक्स सं. 10014,मंबु ई -400001
Financial Inclusion & Development Dept, Central Office,10th Floor, Central Office Building, Shahid Bhagat Singh Marg,P.B.No.10014,Mumbai-1
टेल� Tel:022-22601000 फैक्सः 91-22-22621011/22610943/22610948 ई -मेल : cgmincfidd@rbi.org.in
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