RBI relaxes norms for AMCs to open branches

The Reserve Bank of India has allowed authorised money changers (AMCs), including banks, to open additional branches in metros without adhering to the old criteria of maintaining a ratio in number of branches in metro and non-metros cities.

"In order to provide more flexibility to authorised persons to decide the location of their branches, it has been decided to dispense with the criteria of 1:1 ratio between metro and non-metro branches," the Reserve Bank said in a notification.

As per the old rules, applications from authorised money changers (AMCs) for additional offices in metropolitan cities were considered only if the applicant had one non-metropolitan office for every office in a metro.

The RBI, however, added that the new rules should not hinder the process of diversification and financial inclusion.

"We expect branches to be diversified and to be meeting the demand of tourists, etc.," it said.

Experts said that besides providing more flexibility to AMCs, the move will also help visitors from overseas who flock to the metros acting as travel hubs.

The apex bank's decision comes less than a month after it allowed Urban Cooperative Banks (UCBs) to be eligible to act as full-fledged money changers.

Authorised banks and Full Fledged Money Changers are allowed to provide facility for reconversion of Indian Rupees to the extent of Rs 50,000 to foreign tourists on receipt of valid passport, VISA and ticket confirmed for departure within 7 days along with original ATM slip. (PTI)