New Bank Branch Policy

Press Information Bureau

Government of India

Ministry of Finance

14-December-2012 16:29 IST

General permission has been granted by RBI to domestic Scheduled Commercial Banks (other than RRBs) to open branches in Tier 2 to Tier 6 centres (with population upto 99,999) which include rural centres; in rural, semi urban and urban centres of the North-Eastern States and Sikkim; and to open mobile branches in Tier 3 to Tier 6 Centres (with population upto 49,999) without permission from RBI in each case, subject to reporting. The New Private Sector Banks are also required to have 25% of their total number of branches in rural and semi-urban centres with population below one lakh on an on-going basis.

The Banks are also required to allocate at least 25% of the branches proposed to be opened during a year in unbanked rural Tier 5 and 6 centres.

Decision to open bank branches are taken by the banks concerned, inter-alia, keeping in view business potential, viability, profitability and availability of infrastructure.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

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