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Branch liberalisation Policy

In a major move to boost opening more banks in unbanked centres and give a measure of confidence to the banking industry in India, Reserve Bank of India has liberalised the branch opening policy. Hitherto banks had to take permission from the RBI to open banks, which were given on a case by case basis. But now in a major move, banks are given general permission to open bank branches, specialised branches, extension counters, satellite offices, service branches in Tier 1 to Tier 6 cities subject to some conditions such as 25% of all branches opened in a year should be in unbanked centres. Further the number of new branches opened in Tier 1 centres should not exceed the number of branches opened in Tier 2 to 6 cities and North East states and sikkim combined. Banks have been given two years’ leeway in opening branches in Tier 2 to 6 cities. The full circular is available at


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