(a) whether there are long pending demands from various States including Tamil Nadu for opening of
branches of the nationalized banks in the country;
(b) if so,the details thereof,State-wise during the last two years and the current year;and
(c) the time by which the new branches of the nationalized banks are likely to be opened
location-wise and State-wise?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) to (c): The opening of new bank branches is governed by the provisions of the Banking
Regulation Act 1949.The proposals for opening new branches at specific centers in States are
submitted to the RBI by individual banks on an annual basis in a prescribed proforma for approval.
Normally within four weeks from its submission the proposal is discussed with the bank and
approvals are communicated thereafter.While considering applications for opening branches,the RBI
gives weightage to the nature and scope of banking facilities provided by banks to common persons
particularly in underbanked areas (districts),actual credit flow to the priority sector,overall
efforts for financial inclusion,etc.At centers where a bank fails to open a branch within a valid
period of authorization i.e. one year, it could include the same in the next annual plan.