<h1>RBI Allows Banks to Open Branches Freely, 25% Must Be in Unbanked Rural Areas; Tier 1 Restrictions Apply.</h1> The Reserve Bank of India (RBI) has granted domestic Scheduled Commercial Banks (excluding Regional Rural Banks) permission to open branches anywhere in the country without prior approval, provided that 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 areas. The RBI has tasked State Level Bankers' Committees with identifying villages with populations over 5,000 lacking bank branches, resulting in 6,593 villages being earmarked for branch openings. This initiative aims to enhance banking penetration and financial inclusion.