Scheduled Commercial Banks can open branch in Sikkim: RBI


New Delhi, 24 December 2012:

General permission has been granted by RBI to domestic Scheduled Commercial Banks (other than RRBs) to open branches in Tier 2 to Tier 6 centres (with population upto 99,999).  This will include rural centres; in rural, semi urban and urban centres of the North-Eastern States and Sikkim.

They will also open mobile branches in Tier 3 to Tier 6 Centres (with population upto 49,999) without permission from RBI in each case.

The New Private Sector Banks are also required to have 25% of their total number of branches in rural and semi-urban centres with population below one lakh on an on-going basis.

The Banks are also required to allocate at least 25% of the branches proposed to be opened during a year in unbanked rural Tier 5 and 6 centres.

Decision to open bank branches are taken by the banks concerned, inter-alia, keeping in view business potential, viability, profitability and availability of infrastructure.

This information was given by the Minister of State for Finance, Namo Narain Meena in written reply to a question in Lok Sabha today.