In order to extend the banking network in unbanked areas, general permission has been granted by Reserve Bank of India )RBI) to domestic Scheduled Commercial Banks (other than Regional Rural Banks) to open branches/mobile branches/Administrative Offices/CPCs (Service branches), (i) in Tier 2 to Tier 6 centres (with population upto 99,999) and (ii) in rural, semi-urban and urban centres of the North-Eastern States and Sikkim subject to reporting. RBI has advised banks that while preparing their Annual Branch Expansion Plan (ABEP), the banks should allocate at least 25 per cent of the total number of branches proposed to be opened during a year in unbanked rural (Tier 5 and Tier 6) centres.

Requests for opening of branches of nationalized banks in rural areas are received from time to time and the same are forwarded to banks or State Level Bankers’ Committee (SLBC) for appropriate action keeping in view the feasibility of opening the branch in the stipulated area.

Branch expansion policy mandates substantial allocation to unbanked rural centres under RBI permission for scheduled commercial banks. The Reserve Bank granted general permission to domestic scheduled commercial banks (excluding regional rural banks) to open branches, mobile branches, administrative offices and service centres in Tier 2-Tier 6 centres and in North Eastern States and Sikkim, subject to reporting. Banks must include such openings in their Annual Branch Expansion Plan and allocate a stated portion of annual branch additions to unbanked rural (Tier 5 and Tier 6) centres; rural branch requests are routed to banks or the State Level Bankers' Committee for feasibility assessment.