RBI mulls relaxing bank branch expansion norms for opening branches in Tier 2 centres

MUMBAI: RBI on Tuesday proposed relaxing branch expansion rules allowing banks to open branches in Tier 2 centres without taking prior permission from the Reserve Bank.

Branch expansion in Tier 2 centres-with population between 50,000 to 99,999 as per Census 2001-have not taken place at the "desired pace", the RBI said in its second quarter monetary policy review.

The RBI raised interest rates for the 13th time since early 2010 but gave a strong signal it may be finished with its current tightening cycle as growth slows and it expects high inflation to ease starting in December.

Source: EconomicTimes