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Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2013 suppose Any bank making huge losses and so RBI decided to close that particular branch.

Whether Decision of RBI is correct or not???
If incorrect then Why????

CA Prashant Gupta

CA Prashant Gupta (Expert)

14 March 2013 banks business doesn't work like that
RBI doesn't decide to close the branch if there is loss
in rural areas many banks has branches which are in loss
it depends on bank decision

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

15 March 2013 As a matter of policy, closure of even loss making branches at rural centres having a single commercial bank branch (excluding Regional Rural Bank branch) is not permitted, as closure would render the centre unbanked. The proposal for closure of a rural branch at a centre served by more than one commercial bank branch should be included in the ABEP after obtaining approval of District Consultative Committee (DCC).

For Detail, Pls Read Master Circular - Branch Authorisation
RBI/2012-13/77
DBOD.No. BL.BC. 26 /22.01.001/2012-13

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