Branch Expansion of Scheduled Commercial Banks.

Press Information Bureau

Government of India

Ministry of Finance

07-September-2011 19:05 IST

Branch Expansion of Scheduled Commercial Banks

As per Reserve Bank of India’s (RBI) Branch Authorisation Policy, general permission has been granted to domestic Scheduled Commercial Banks (other than RRBs) to open branches / mobile branches / Administrative Offices / CPCs (Service Branches), (i) in Tier 3 to Tier 6 centres (with population up to 49,999) and (ii) in rural, semi-urban and urban centres of the North-Eastern States and Sikkim subject to reporting. Opening of branches by these banks in Tier 1 and Tier 2 centres (centres with population of 50,000 and above) requires prior approval of RBI except in North Eastern States and Sikkim. Banks apply for authorisations for opening of branches in Tier 1 and Tier 2 centres in their Annual Branch Expansion Plan.

As per RBI guidelines, Scheduled Commercial Banks have been given general permission to install off-site Automated Teller Machines (ATMs) / Mobile ATMs at the location of their choice without the prior permission of RBI, subject to reporting. RBI has advised banks that while preparing their Annual Branch Expansion Plan (ABEP), the Banks should allocate at least 25 percent of the total number of branches proposed to be opened during a year in unbanked rural (Tier 5 and Tier 6) centres.

This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Rajya Sabha yesterday.

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