MANU/RPRL/0248/2016

Ministry : Reserve Bank of India

Department/Board : RBI

Press Release No. : 2016-2017/872

Date : 06.10.2016

Report of the Internal Working Group (IWG) on Rationalisation of Branch Authorisation Policy

The Reserve Bank of India today placed on its website, the Report of the Internal Working Group (IWG) on Rationalisation of Branch Authorisation Policy (Chair: Smt. Lily Vadera, Chief General Manager, Department of Banking Regulation). Suggestions/comments, if any, on the recommendations contained in the Report, may be sent by email on or before November 5, 2016.

Recommendations

The thrust of the recommendations is to facilitate financial inclusion by ensuring availability of banking services in all centers through low cost delivery channels and mapping the footprints of various banking channels. The Group has recommended a two-phased approach.

The key recommendations of the IWG are as under:

A. In the first phase, the recommendations focus on broadening of the current framework to include all 'banking outlets' which are fixed point locations and bring them on par with branches.

i) A 'banking outlet' has been defined as "a fixed point service delivery unit, manned by either bank's staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques/cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at least five days a week. It carries uniform signage with name of the bank and authorisation from it, contact details of the controlling authorities and complaint escalation mechanism. The bank should have a regular off-site and on-site Monitoring of the 'banking outlet' to ensure proper supervision, 'uninterrupted service' and timely addressing of customer grievances. The working hours/days need to be displayed prominently."

Any other fixed point service delivery unit of the bank which does not comply with the above prescription regarding minimum working hours/days will be considered a 'part-time banking outlet'.

ii) Banks to open banking outlets subject to their meeting the 25 per cent norm of opening banking o........