Reserve Bank of India (Regional Rural Banks – Branch Authorisation) Directions, 2025
RBI master-direction RBI/DOR/2025-26/247 · 28 Nov 2025
RBI master-direction RBI/DOR/2025-26/247 · 28 Nov 2025
Summary
Check the official recordThe Reserve Bank of India issues these directions to govern branch authorisation for Regional Rural Banks. Banks must establish Board-approved policies for opening, merging, shifting, and closing banking outlets, and for engaging Business Correspondents. Banks must open at least 25 percent of new banking outlets in unbanked rural centres. The directions define banking outlets and set criteria for tier-wise expansion. Banks must obtain prior RBI approval for outlets in Tier 1 to 4 centres via the Pravaah portal, while rural centres require post-facto reporting. The directions mandate regular monitoring of outlets and Business Correspondents, and require banks to report infrastructure changes through the Central Information System for Banking Infrastructure portal. These rules take effect immediately.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
If you do not comply
RBI/DOR/2025-26/247
DOR.LIC.REC.No.166/22-00-001/2025-26
November 28, 2025
Reserve Bank of India (Regional Rural Banks - Branch Authorisation) Directions, 2025
Table of Contents
Chapter I – Preliminary
A. Short Title and Commencement
B. Applicability
C. Definitions
Chapter II – Role of Board of Directors
A. Board Approved Policy
B. Key responsibilities
Chapter III – Branch Authorisation
A. Opening of Banking Outlets
B. Off-site / Mobile Automated Teller Machines (ATMs), Cash Deposit Machines (CDMs) / Bunch Note Acceptor Machines (BNAMs)
Chapter IV – Business Facilitator / Business Correspondent Model
A. Eligibility
B. Guidelines for Engaging Business Facilitator
C. Guidelines for engaging Business Correspondents (BCs)
Chapter V – Information Reporting
A. Banking Outlets / Branches / Offices / Customer Service Points, etc.
Chapter VI – 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 (Regional Rural Banks - Branch Authorisation) Directions, 2025.
These directions shall come into effect from the date of issue of this Directions.
B. Applicability
C. Definitions
(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 Offices’ 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) ‘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.
Chapter II – Role of Board of Directors
A. Board Approved Policy
(1) 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 22.
(2) 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 29 and paragraphs 35 to 42.
(3) Acquisition of accommodation on lease / rental basis by a bank for its use as specified in paragraph 33 and 34.
(4) 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 43 to 65.
B. Key responsibilities
(1) Banking Outlets
(1) 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.
(2) 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.
(3) 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.
(4) The Board shall make the above data available to RBI as and when required and called for.
(2) Business Correspondent Model (BC)
(1) The Board shall approve the policy for engaging Business Correspondents (BCs).
(2) 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.
(3) 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 62.
(4) 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.
Chapter III – Branch Authorisation