The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Local Area Banks - Branch Authorisation) Directions, 2025.
The following has been stated: -
•The RBI on October 10, 2025, issued the Local Area Banks – Branch Authorisation Directions, 2025, outlining guidelines for opening, merging, shifting, and closing of banking outlets, including part-time and mobile branches, with special focus on financial inclusion in Unbanked Rural Centres (URCs).
•The Directions define roles of Board-approved policies, Administrative/Back Offices, and monitoring of Banking Outlets to ensure proper supervision, uninterrupted service, and customer grievance redressal.
•It prescribes the use of Business Correspondents and Doorstep Banking services with clear risk management, IT standards, and transparency in fees, while ensuring KYC, AML compliance, and customer confidentiality.
•Reporting of all outlets, branches, and customer service points to RBI via CISBI portal is mandatory, and previous branch authorisation instructions are repealed.
•These directions shall become effective on November 28, 2025.
[Notification No.: RBI/DOR/2025-26/224 DOR.LIC.REC.No.143/22-01-001/2025-26]
