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RBI liberalised norms for banks to open branches in Tier I cities

Sep 20, 2013 16:56 IST

Reserve Bank of India (RBI) on 19 September 2013 announced that banks can open their branches in tier 1 centers without taking its permission in each case .But RBI imposed some conditions to open branches. According to 2011 census Tier I center are those with population above 1 lakh.

Conditions Imposed by Reserve Bank of India (RBI)

RBI passed the guidelines under following conditions:

• Banks should open 25 percent of their branches in a financial year in Un-banked tier-V and tier-VI centers as earlier.

• Total number of branches in tier –I center’s can’t exceed the number of branches opened in tier-2 to tier-6 centers during a year.

• If the banks are unable to open all tier – 1 branches during that year, they can carry it over for next two years

• If the banks unable to open requisite branches in tier- II to tier- VI centers for some reason, it should necessary rectify the shortfall in the next financial year.

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