| 5.1 | Banks are required to prepare a Branch Network Policy for opening, closing and relocating of branches, service centers, and remittance centers. Branch Network Policy of the Bank will cover, inter-alia, the following points:
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| | a) | Bank's overall strategy to serve customers (including the elderly and disabled customers) and deploy service channels (including the digital platforms);
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| | b) | Defining market niche / target market of the Bank;
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| | c) | Bank's approach towards promoting financial inclusion and increasing outreach of financial services;
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| | d) | Key channels to be deployed for the delivery of financial services;
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| | e) | Broad parameters/criteria for opening, closing and relocating of branches, service centers, and remittance centers;
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| | f) | Plans for promoting the use of digital modes;
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| | g) | Plans for offering any other financial services through branches (e.g. bancassurance) or engaging agent banks to undertake permissible banking activities;
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| | h) | Plans for serving customers in priority areas as a part of corporate social responsibility (CSR).
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| 5.2 | The Branch Network Policy will not cover ATMs, which will continue to be dealt with separately under the existing SAMA rules/instructions.
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| 5.3 | Banks will submit the draft Branch Network Policy to their Board of Directors (or the delegated committee of the Board) for review and approval. However, the Branch Network Policy of the branches of foreign banks can be approved by the Chief Executive or a duly authorized senior executive at Head Office instead of the Board of Directors.
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| 5.4 | Banks to submit the Branch Network Policy to SAMA after its approval by their Board of Directors (or the delegated Board committee) within four months from the issuance of this Regulation along with the following information:
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| | a) | Details and annual volume of financial services offered through digital modes during each of the last three years;
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| | b) | Number of branches, service centers, and remittance centers opened, closed or relocated (Zone-wise) during each of the last three years;
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| | c) | Number of new ATMs (including portable/temporary ATMs) deployed during each of the last three years;
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| | d) | Results of any customer survey conducted and/or Mystery Shopping done to assess the customer satisfaction and quality of banking services;
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| | e) | Any other measures taken to increase the outreach of financial services and offering basic banking services to public.
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| 5.5 | SAMA will review the Branch Network Policy to grant it's no objection. While evaluating the Branch Network Policy of a Bank, SAMA will review, inter alia, the following:
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| | a) | Bank's plan for offering financial services through digital modes and timeline for their roll out;
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| | b) | Results of any customer feedback survey conducted and/or Mystery Shopping done to assess the customer satisfaction and quality of banking services; and
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| | c) | Any other measures taken to increase the outreach of financial services and offering basic banking services in priority areas.
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| 5.6 | Banks will review (and update, if required) the approved Branch Network Policy every three years (or more frequently, if so required) to ensure its consistency with the relevant regulatory processes and prevailing market dynamics. The revised Policy after review and approval by the Board of Directors or the delegated committee of the Board (in the case of branches of foreign banks, by the Chief Executive or a duly authorized senior executive at Head Office) will be submitted to SAMA within 30 calendar days of its approval.
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