Module: | Capital Adequacy, Basel Norms & Monetary Policy
Q40: Which of the following statements, regarding the classification of 'Banking Outlets' under branch authorisation directions, are correct?
1. A fixed point service delivery unit is classified as a full-fledged 'Banking Outlet', if it provides services for a minimum of four hours per day for at least five days a week.
2. Mobile Branches and Cash Deposit Machines (CDMs) are explicitly excluded from being treated as 'Banking Outlets'.
3. Extension Counters and Satellite Offices are treated as independent 'Banking Outlets', provided they satisfy the minimum service hours criteria.
4. Any fixed point unit providing services for less than the minimum prescribed duration, is classified as a 'Part-time Banking Outlet'.
2. Mobile Branches and Cash Deposit Machines (CDMs) are explicitly excluded from being treated as 'Banking Outlets'.
3. Extension Counters and Satellite Offices are treated as independent 'Banking Outlets', provided they satisfy the minimum service hours criteria.
4. Any fixed point unit providing services for less than the minimum prescribed duration, is classified as a 'Part-time Banking Outlet'.
✅ Correct Answer: D
The correct answer is D. All statements are correct.
Under the RBI's rationalised Branch Authorisation Policy, a 'Banking Outlet' is strictly defined as a fixed-point service delivery unit manned by bank staff or a Business Correspondent where services of acceptance of deposits and encashment of cheques/cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at least 5 days a week.
Any unit falling short of this strict timeframe is classified as a 'Part-time Banking Outlet'. Furthermore, automated or moving entities like ATMs, E-Kiosks, CDMs, and Mobile Branches are explicitly excluded from this definition.
Extension Counters and Satellite Offices are inherently treated as independent Banking Outlets as long as they meet the daily and weekly operational hour mandates.
Therefore, Options A, B, and C are incorrect as they only capture a partial view of the regulatory framework.
Under the RBI's rationalised Branch Authorisation Policy, a 'Banking Outlet' is strictly defined as a fixed-point service delivery unit manned by bank staff or a Business Correspondent where services of acceptance of deposits and encashment of cheques/cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at least 5 days a week.
Any unit falling short of this strict timeframe is classified as a 'Part-time Banking Outlet'. Furthermore, automated or moving entities like ATMs, E-Kiosks, CDMs, and Mobile Branches are explicitly excluded from this definition.
Extension Counters and Satellite Offices are inherently treated as independent Banking Outlets as long as they meet the daily and weekly operational hour mandates.
Therefore, Options A, B, and C are incorrect as they only capture a partial view of the regulatory framework.