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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Urban Co-operative Banks - Branch Authorisation) Directions, 2025

28-Nov-2025 | RBI/DoR/2025-26/271 DoR.LIC.REC.No.190/07-01-000/2025-26

RBI has issued RBI (Urban Co-operative Banks - Branch Authorisation) Directions, 2025 effective from 28th November 2025. Key Highlights: 1. Applicability - All Urban Co-operative Banks (UCBs). 2. Area of Operation - UCBs can expand their area of operation after passing a general body resolution, updating byelaws with the Registrar, and obtaining an RBI NOC wherever required through the PRAVAAH portal. 3. General Permission for Branch Expansion - UCBs that meet Financially Sound and Well Managed (FSWM) criteria adequate capital, low NPAs, consistent profits, no CRR/SLR defaults, strong governance, full CBS implementation, and no recent RBI penalties may open branches in their approved area without prior RBI approval. 4. Selecting and Approving Centres - UCBs must submit an Annual Business Plan (ABP) with required annexures through the PRAVAAH portal. RBI will allocate centres within 90 days. 5. Engagement of Business Facilitators (BFs)/Business Correspondents (BCs) - UCBs may engage BFs/BCs using ICT-based solutions to expand financial inclusion, subject to Board approval and RBI's prior approval of their BF/BC scheme. 6. Doorstep Banking - FSWM UCBs may offer Doorstep Banking on their own. Non-FSWM UCBs require prior approval from RBI via the PRAVAAH portal. 7. Mandatory Reporting through CISBI - All UCBs must report information in a single prescribed Proforma (Annex XIV) through the Central Information System for Banking Infrastructure (CISBI) portal for allotment of UCN/BSR/AD codes for branches, NAIOs, CSPs, ATMs, etc. 8. Reporting of Infrastructure Changes - Any opening, closure, merger, shifting, or conversion of branches/offices/ATMs/NAIOs must be reported on the CISBI portal immediately and within one week, and such changes take effect instantly in the system. For more information, please refer the attached document.

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