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News 25% of new bank branches to be opened in rural areas: RBI

25% of new bank branches to be opened in rural areas: RBI

Mumbai, May 18 (IANS) The Reserve Bank of India (RBI) on Thursday mandated that 25 per cent of the total number of ‘banking outlets’ opened during a financial year should be located in unbanked rural centres.

The RBI mandated this in its notification — “Rationalisation of Branch Authorisation Policy- Revision of Guidelines” — issued on Thursday.

“Domestic scheduled commercial banks (other than RRBs) are permitted to open, unless otherwise specifically restricted, banking outlets in tier 1 to tier 6 centres without having the need to take permission from RBI in each case,” the central bank said in the notification.

“At least 25 per cent of the total number of ‘Banking Outlets’ opened during a financial year should be opened in unbanked rural centres.

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