June 30, 2016
Chief Executive Officers of all
Dear Sir / Madam,
Issue of authorization for opening Controlling Offices (Regional/Zonal/Administrative Offices) u/s 23 of the Banking Regulation Act, 1949 (AACS)
As you are aware, licence under section 23 of the BR Act, 1949 (AACS) is required for opening Controlling Offices (Regional/Zonal/Administrative Office) in terms of instructions contained in our circular UBD.RBL.33/J-86-87 dated October 15, 1986.
2. The matter was revisited in the light of requests received from UCBs for setting up Controlling Offices (Regional/Zonal/Administrative Offices) and it has been decided that licensed UCBs which have implemented CBS and are fulfilling the following criteria may, at their discretion, open one controlling office for a cluster of not less than 40 branches without prior approval of RBI:
3. UCBs must ensure that the controlling office is opened within their Area of Operation (as approved by RBI) and should not have any direct interface / business transactions with customers. Furthermore, eligible UCBs are required to submit full details regarding opening of such offices, within two weeks to the Regional Office concerned for issue of licence u/s 23 of the Act ibid.