<h1>RBI Allows Banks to Open Branches Freely Nationwide, 25% Must Be in Unbanked Rural Areas; Balancing Urban-Rural Branches.</h1> The Reserve Bank of India has granted domestic Scheduled Commercial Banks, excluding Regional Rural Banks, permission to open branches nationwide without prior approval, provided at least 25% of new branches are in unbanked rural areas (Tier 5 and Tier 6). Additionally, the number of branches in Tier 1 areas cannot exceed those in Tier 2 to Tier 6 and certain northeastern regions. As of March 31, 2016, 65.12% of 132,700 bank branches are in rural and semi-urban areas. Branch openings are based on banks' commercial decisions and RBI policies, considering viability and local banking needs. This was stated by a government official in response to a parliamentary question.