RBI/DOR/2025-26/147
DOR.LIC.REC.No.66/22-01-001/2025-26
November 28, 2025
Reserve Bank of India (Commercial Banks - Branch Authorisation) Directions, 2025
Table of Contents
Chapter I – Preliminary
A. Short Title and Commencement
B. Applicability
C. Definitions
Chapter – Role of Board of Directors
A. Board Approved Policy
B. Key responsibilities
Chapter III – Banking Outlet Authorisation
A. Domestic Commercial Banks
B. Foreign Banks (operating in branch mode)
C. Off-site / Mobile Automated Teller Machines (ATMs), Cash Deposit Machines (CDMs) / Bunch Note Acceptor Machines (BNAMs)
Chapter IV – Digital Banking Units (DBUs)
A. Opening of DBUs – General Permission
B. Infrastructure and Resources
C. Cyber Security
D. Products and Services
E. Digital Banking Customer Education
F. Digital Business Facilitator / Business Correspondent
G. Customer Grievance Redressal
Chapter V – Business Facilitator / Business Correspondent Model
A. Eligibility
B. Guidelines for engaging business facilitator
C. Guidelines for engaging Business Correspondents (BCs)
Chapter VI – Doorstep Banking
A. Eligibility and guidelines
B. Services to be offered
C. Modalities of Delivery
D. Delivery process
E. Risk Management
F. Transparency
G. Other conditions
H. Redressal of Grievances
Chapter VII – Information Reporting
A. Banking outlets / branches / offices / Customer Service Points (CSPs) etc.
B. Digital Banking Units (DBUs)
Chapter VIII – Repeal and Other Provisions
A. Repeal and saving
B. Application of other laws not barred
C. Interpretations
Annex I
Annex II
Annex III
Annex IV
Annex V
In exercise of the powers conferred by Section 35 A and Section 23 read with Section 51 of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Directions hereinafter specified.
Chapter I – Preliminary
A. Short Title and Commencement
- These Directions shall be called the Reserve Bank of India (Commercial Banks - Branch Authorisation) Directions, 2025.
- These directions shall come into force with immediate effect.
B. Applicability
- These Directions shall be applicable to Commercial Banks (hereinafter collectively referred to as 'banks' and individually as a 'bank').
For the purpose of these Directions, ‘Commercial Banks’ mean banking companies (other than Small Finance Banks, Payment Banks, and Local Area Banks), corresponding new banks, and the State Bank of India, as defined respectively under clauses (c), (da), and (nc) of Section 5 of the Banking Regulation Act, 1949.
Provided that paragraph 28 to paragraph 39 shall be applicable only to Foreign Banks.
C. Definitions
- In these Directions, unless the context states otherwise, the terms herein shall bear the meanings assigned to them below:
- (1) ‘Administrative Office’ or ‘Controlling Office’ means a corporate, regional, zonal, or any other office, by whatsoever name called, that exercises control or oversight functions on units / Banking Outlets / Offices falling under its jurisdiction and undertakes internal administrative functions including oversight of bank’s own staff and carries out no banking or business transactions. Direct interface with customers is not permitted.
- (2) ‘Back Office(s)’ means a Central Processing Centre (CPC) or an Office, by whatever name called, that exclusively attends to functions such as data processing, processing of loans, verification and processing of documents, issuance of cheque books, demand drafts etc. on requests received from other Banking Outlets and carries out other functions incidental to banking business. Direct interface with customers is not permitted.
- (3) ‘Banking Outlet’ is 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 four 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’ except temporary interruptions due to telecom connectivity, etc. and timely addressing of customer grievances. The working hours/days need to be displayed prominently.
A Banking Outlet which does not provide delivery of service for a minimum of four hours per day and for at least five days a week will be considered a ‘Part-time Banking Outlet’.
Explanations:
- (i) Extension Counters, Satellite Offices, Part-shifted Branches, Ultra Small Branches and Specialised Branches, subject to their satisfying the definition given above, shall be treated as independent ‘Banking Outlets’ or ‘Part-time Banking Outlets’, as the case may be.
- (ii) ATMs, E- lobbies, Bunch Note Acceptor Machines (BNAM), Cash Deposit Machines (CDM), E- Kiosks and Mobile Branches will not be treated as ‘Banking Outlets’. Point of Sale (PoS) terminals where limited cash withdrawal facility is allowed by banks in terms of extant instructions without having an arrangement with the concerned entities as ‘business correspondents’ will not be considered as ‘Banking Outlets’.
- (4) ‘Digital Banking’ refers to present and future electronic banking services provided by a bank for the execution of financial, banking and other transactions and/or orders / instruments through electronic devices / equipment over web sites (i.e. online banking), mobile phones (i.e. mobile banking) or other digital channels as determined by the bank, which involve significant level of process automation and cross-institutional service capabilities running under enhanced technical architecture and differentiated business model / strategy.
- (5) ‘Digital Banking Unit’ (DBU) means a specialised fixed point business unit / hub housing certain minimum digital infrastructure for delivering digital banking products & services as well as servicing existing financial products and services digitally, in both self-service and assisted mode, to enable customers to have cost effective / convenient access and enhanced digital experience to / of such products and services in an efficient, paperless, secured and connected environment with most services being available in self-service mode at any time, all year round.
- (6) ‘Digital Banking Segment’ for the purpose of disclosure under Accounting Standard 17 (AS-17), is a sub-segment of the existing ‘Retail Banking’ Segment which will be sub-divided in to (i) Digital Banking and (ii) Other Retail Banking. The business involving digital banking products acquired by DBUs or existing digital banking products would qualify to be clubbed under this segment.
- (7) ‘Digital banking products and services’ mean those financial products / services whose designs and fulfilments have nearly end-to-end digital life cycle with the initial customer acquisition / product delivery necessarily taking place digitally through self-service or assisted self-service.
- (8) ‘Unbanked Rural Centre’ (URC) is a rural (Tier 5 and 6) centre that does not have a CBS-enabled ‘Banking Outlet’ for carrying out customer-based banking transactions.
- All other expressions, unless defined herein, shall have the same meaning as have been assigned to them under the Banking Regulation Act, 1949 or the Reserve Bank of India Act, 1934 or any statutory modification or re-enactment thereto, or Glossary of Terms published by RBI or as used in commercial parlance, as the case may be.
Chapter – Role of Board of Directors
A. Board Approved Policy
- A bank shall put in place separate Board-approved policies for the following:
- (i) Opening, merging, shifting, conversion and closure of Banking Outlets for strict compliance with these directions, in letter and spirit as prescribed in paragraphs 8 to 21.
- (ii) Opening of Mobile Branches, Administrative Offices, Back Offices, Call Centres, Mobile Automated Teller Machines (ATMs), Cash Deposit Machines (CDMs) / Bunch Note Acceptor Machines (BNAMs), etc. as prescribed in paragraphs 23 to 25 and 40 to 47 respectively.
- (iii) Acquisition of accommodation on lease / rental basis by a bank for its use as specified in paragraphs 26 and 27.
- (iv) Opening and operating of Digital Banking Units as prescribed in paragraphs 48 to 64.
- (v) Engagement of Business Correspondents (BCs) with the objectives of adequate oversight of the BCs as well as provision of services to customers, putting in place an effective complaints redressal system as prescribed in paragraphs 65 to 87.
- (vi) Offering Doorstep Banking services including selection of agents and payment of fee / commission, charges, if any, to be levied on the customer, etc. as prescribed in paragraphs 88 to 101.
B. Key responsibilities
7. The Board of a bank shall fulfill the following responsibilities:
- (1) Banking Outlets
- (i) The Board shall ensure regular off-site and on-site monitoring system of the ‘Banking Outlet’ to ensure proper supervision, ‘uninterrupted service’ and timely addressing of customer grievances.
- (ii) The Board shall regularly review and monitor the transactions in the Banking Outlets to see that banking services are being transacted in these outlets and more specifically the target customers for financial inclusion are getting the banking facilities in unbanked rural centres.
- (iii) The Board shall set internal targets for financial inclusion. Data on centre-wise and tier-wise customer accounts and transactions (Type and number of accounts, deposits received, advances made, remittances processed, outstanding balances, etc.) should be captured on regular basis and the Board shall review the progress in this regard regularly, say on quarterly basis.
- (iv) The Board shall make the above data available to RBI as and when required and called for.
- (2) Digital Banking Units (DBUs)
- (i) The board shall ensure provisions of regular on-site and off-site monitoring system covering all aspects of the guidelines.
- (ii) The Board or a Committee of the Board shall review the progress and key performance indicators of digital banking services including that of DBU separately at suitable periodicity. The review shall cover both business and risk aspects of the segment.
- (3) Business Correspondent Model (BC)
- (i) The Board shall approve the policy for engaging Business Correspondents (BCs).
- (ii) The Board shall examine the issue of allowing BCs to handle deposit and payment transactions of various credits, remittance, overdraft and other products of bank. Complaints redressal system in this regard shall also be laid down by the Board.
- (iii) The Board shall review the operations of BCs at least once every six months with a view to ensuring that requirement of prefunding of Corporate BCs and BC Agents should progressively taper down with the passage of time as specified in paragraph 84.
- (iv) The Board of a bank shall review the position of payment of remuneration of BCs and shall also lay down a system of monitoring by the top management of the bank.
- (4) Doorstep Banking
- (i) The Board shall review the operation of doorstep banking facility on a half-yearly basis, during the first year of its operation and subsequently on an annual basis.
Chapter III – Banking Outlet Authorisation
A. Domestic Commercial Banks
A.1 Opening of banking outlets – general permission
8. Financial inclusion being the overarching objective of banking expansion and in view of the operational flexibility being given to banks, a scheduled commercial bank is permitted to open Banking Outlets in Tier 1 to Tier 6 centres without having the need to obtain permission from RBI in each case, unless otherwise specifically restricted. However, a bank from which general permission has been withdrawn shall require prior approval as specified in paragraphs 18 to 21 below.
Explanation: The policy covers the opening of ‘Banking Outlets’ in all Tiers as defined on the basis of population as per Census 2011. The tier-wise and population group-wise classification of centres is provided below.
