RBI further eases branch property acquisition norms for banks

Liberalising its policy for bank branches, the RBI today said banks will not be required to inform the central bank on a periodic basis about disputed premises.
However, the banks have been told that "the legitimate grievances of owners of property leased to the bank should be examined at appropriately senior level in the bank and expeditious action should be taken to redress such grievances."
Besides, banks must ensure that their branches are not functioning from premises unauthorised in law, RBI said in a notification.
"It is reiterated and banks are advised that norms and procedures for acquisition of accommodation on lease or rental basis by commercial banks for their use are left to be determined by the banks themselves," RBI said.

The norms and procedures for acquisition of accommodation on lease or rental basis by commercial banks for their own use have been in operation for a number of years, it said.
In keeping with the current liberalised environment with regard to opening of branches, it has been decided to do away with the periodic statements on disputed premises to the Regional Directors of RBI, it said.
Under RBI's liberalised branch authorisation policy, commercial banks (excluding RRBs) have been given general permission to open branches at any place in India, without seeking prior approval of RBI in each case, subject to certain conditions, the central bank said.