Para 2 of the Master Circular dated 1 July 2011 on Branch Authorisation defines branch as under:
For the purpose of branch authorisation policy, a "branch" would include a full fledged branch, a satellite office, an extension counter, an off site ATM (automated teller machine), administrative office, controlling office, service branch (back office processing centre) and credit card centre. A call centre will not be treated as a branch. A call centre is one where only accounts or product information is provided to the customers through tele banking facility and no banking transaction is undertaken through such centres. Also, no direct interface with clients/customers is permitted at call centres.
At present no change is envisaged in the definition of bank branches as not to include ATMs and back offices in different geographical locations in order to encourage ATM penetration. However, to encourage ATM penetration scheduled commercial banks have been permitted to install of site/mobile ATMs at the centres/places identified by them, without permission from the Reserve Bank.
Further, domestic scheduled commercial banks (other than RRBs) are permitted to open branches/mobile branches/administrative offices/central processing centres (CPCs)/service branches in Tier 3 to Tier 6 centres (with population up to 49,999 as per Census 2001 without permission from the Reserve Bank. It may be mentioned that administrative offices, central processing centres (CPCs) and service branches are back offices, as there is no direct interface with the customers.
