RBI orders new 25% bank branches for rural areas
Reserve Bank of India advised all banks during preparation of their yearly branch development plan. RBI advised that at least 25% out of total bank branches should be open in bank less rural areas in this year. RBI described that bank less rural areas are those areas which does not have mortar and brick building of any profitable bank.
Currently, banks allowed opening branches of bank in tier three and tier six centers deprived of RBI’s permission. However, branches which are going to start in tier one and tier two need prior permission from RBI, Sikkim and north eastern are exception.
RBI also framed that each branch is supposed to introduce in tier three and tier six centre of bank less districts. Authorization will allow for branches that are going to open in tier one and tier two centre.
The aim behind RBI’s advice is to carry services to recognized 72,800 villages along with 2,000 populations until this March 2012. RBI says there is requirement to open more mortar and brick buildings. The 2011-12 monetary policy statement had explain the requirement of opening the bank branches in rural villages to enhance banking access in undeveloped areas of country according to Government’s financial programme.