Within days of new RBI Governor Raghuram Rajan making comments to this effect, the central bank today allowed lenders to open branches, including in big cities, without its permission provided they fulfil certain conditions. With the objective of further liberalising and rationalising the branch authorisation policy, the general permission to domestic scheduled commercial banks (other than RRBs) is now allowed to open branches in Tier 1 centres, the Reserve Bank said in a notification.
However, the automatic permission is subject to certain conditions including at least 25 per cent of the total number of branches opened during the financial year must be opened in unbanked rural (Tier 5 and Tier 6) centres, it said. Unbanked centres refer to locations that do not have a brick and mortar structure of any scheduled commercial bank for customer based banking transactions. “No longer will a well-run scheduled domestic commercial bank have to approach the RBI for permission to open a branch,” Rajan had said in his maiden press conference after taking charge as the Governor.
Read more >> Click here
No comments :
Post a Comment