The RBI has proposed that domestic scheduled commercial banks, other than RRBs, be permitted to open branches in Tier-II centres (with a population of between 50,000 and 99,999 as per census 2001) without having to take its permission.

However, the opening of branches in tier-I centres (with population of 1,00,000 and above) will still need the RBIs nod. The RBI had observed that the branch expansion in tier-II centres has not taken place at the desired pace. Domestic scheduled commercial banks were earlier permitted to open branches in tier-III to tier-VI centres (with population up to 49,999 as per Census 2001) and in the rural, semi-urban and urban centres in North-Eastern states and Sikkim under general permission.