In order to rationalise the process of branch opening and to enable the UCBs to tap growth opportunities in the sector, it has been decided to grant general permission for branch expansion in the approved area of operation to financially strong UCBs. This is as per the Revised Regulatory Framework for Urban Co-operative Banks (UCBs) released by RBI on July 19, 2022 based on the recommendation of the Expert Committee on Primary (Urban) Co-operative Banks.
In addition to the general permission, the branch expansion under the prior approval route as per the existing framework will also continue, for other eligible UCBs. However, the process has been simplified to reduce the time taken for granting approvals for opening new branches.
The revised instructions shall come into force with immediate effect.
This circular is applicable to all Primary (Urban) Co-operative Banks (except Salary Earners’ Banks).
Link: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12512&Mode=0
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