In terms of the revised guidelines issued by Reserve Bank of India (RBI) vide circular dated May 18, 2017, the term 'Branch" has been substituted by "Banking Outlet (BO)" which includes both brick and mortar branches and Business Correspondent (BC) outlets to enable Banks in expanding their network even in remote rural areas in a cost-effective manner for hassle free services to customers in rural areas. This was stated by Union Minister for State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.

The year-wise number of branches of PSBs opened in rural areas during the current plan period, is as under–

FY	Total Branches opened	Out of which, number of rural branches opened
2018-19	430	128
2019-20	545	130
2020-21	651	75
2021-22	476	100
2022-23	927	316

Source: RBI

The State Bank of India (SBI) has informed that a survey for opening of new branches has been carried out in 80 villages.

Moreover, the Minister stated, rolling out of banking outlets in uncovered areas is a continuous process, looked after by the State/ UT Level Bankers' Committee (SLBC/ UTLBC), in consultation with the concerned State/ UT Government, member banks and other stakeholders. Banks, however, inter-alia, consider proposals for opening banking outlets in the light of RBI's instructions, their business plans and their commercial viability.

Further, the Minister stated, RBI has granted general permission to domestic Scheduled Commercial Banks (excluding Regional Rural Banks) to open banking outlets including branch at any place in the country, without seeking prior approval of RBI in each case, subject to at least 25 percent of the total number of banking outlets opened during a financial year being in unbanked rural centres i.e. centres having population less than 10,000 (Tier 5 and Tier 6 centres).

Banking outlet expansion allows banks to open outlets nationwide while prioritising placement in unbanked rural centres. Revised guidance defines Banking Outlet to include brick and mortar branches and Business Correspondent outlets, allowing banks to extend services in remote rural areas. Domestic scheduled commercial banks (except regional rural banks) have been accorded general permission to open outlets nationwide without prior RBI approval for each case, provided a portion of new outlets annually are placed in unbanked rural centres. Expansion into uncovered areas is coordinated by State/UT Level Bankers' Committees and banks assess proposals against RBI instructions, business plans and commercial viability.