Section 23 of Banking Regulation Act, 1949 - Mobile Branches and Mobile ATMs

 Section 23 of Banking Regulation Act, 1949 - Mobile Branches and Mobile ATMs

RBI/2010-11/132

DBOD.No. BL.BC.27/22.01.001/2010-11

July  23, 2010

Shravana 1, 1932 (S)

All Scheduled Commercial Banks

(excluding RRBs)

Dear Sir,

Section 23 of Banking Regulation Act, 1949 -

Mobile Branches and Mobile ATMs

In terms of our circular DBOD.No.BL.BC. 65/ 22.01.001/ 2009-10 dated December 1, 2009, general permission was granted todomestic scheduled commercial banks (other than RRBs) to open branches in Tier 3 to Tier 6 centres  (with population upto 49,999 as per Census 2001) and in rural, semi urban and urban centres in the North Eastern States and Sikkim, subject to reporting.

2.  It has since been decided to further liberalise the Branch Authorisation Policy and grant general permission to domestic scheduled commercial banks (other than RRBs) to operationalise Mobile branches in Tier 3 to Tier 6 centres  (with population upto 49,999 as per Census 2001) and in rural, semi urban and urban centres in the North Eastern States and Sikkim, subject to reporting.

3.    The scheme of mobile branch envisages the extension of banking facilities through a well protected van with arrangements for two or three officials of the bank sitting in it with books, safe containing cash etc.  The mobile unit would visit the places proposed to be served by it on specific days / hours. The mobile branch should not visit villages / centres which are served by co-operative banks and places served by regular branch of commercial banks. The mobile branch should be stationed in each village/ location for a reasonable time on specified days and specified hours, so that its services could be utilized properly by customers. The business transacted at the mobile branch shall be recorded in the books of the base branch/data centre. The bank may give wide publicity about the mobile branch in the village, including details of "specified days and working hours" at various locations so as to avoid any confusion to local customers; and any change in this regard should also be publicized. In order to inform public/customers, arrangement should be made to display these details in the areas serviced by the mobile branch.

4.  Further, it has been decided to grant general permission to Scheduled commercial banks (other than RRBs) to operationalise Mobile ATMs at centres / places identified by them, without prior permission from the Reserve Bank, subject to reporting. Other conditions stipulated in our circular DBOD.No.BL.BC.137/22.01.001/2008-09 dated June 12, 2009 remain unchanged.

5.  The details of the mobile branches and mobile ATMs should be reported to Reserve Bank of India  in the  proforma given in Annex , as required in terms of paragraph 19 of our Master circular DBOD.No.BL.BC. 8/ 22.01.001/ 20010-11 dated July 1,2010.

Yours faithfully



( A.K. Khound)

Chief General Manager

Annex

Bank :

A. Format for reporting operationalisation  of mobile branches / Offices

B. Format for reporting operationalisation of mobile ATMs