Banks Allowed to Shift/Merge/Close Branches – Says RBI

Banking Economy News
Save

BUSINESS MANTRA, FARIDABAD

For a greater freedom in operations, Indian Banks are now allowed to shift/merge/close their Urban and Semi-Urban Branches without the approval of Reserve Bank of India. Even the rural Branches can also be shifted without approval from RBI. Shifting/merger/closure of rural and sole semi-urban Branches, the approval of District Consultative Committee (DCC) and District Level Review Committee (DLRC) is required before shifting. It has to be ensured that the customers of such Branches are informed well before time and banking needs of the customers are properly met through business correspondences, satellite offices, and mobile vans.

Another condition which the Banks have to meet is that if shifting happens then their Branches are shifted to lesser populated or unbanked area, semi urban to semi urban and rural to rural area.

 

About the author

admin