Banks need not get RBI nod for opening new branches: Raghuram Rajan

Posted By: Religare
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Banks need not get RBI nod for opening new branches
The newly appointed Governor of Reserve Bank of India said that the banks will soon no longer need the RBI's permission to open branches, said the media report. "No longer will a well-run scheduled domestic commercial bank have to approach the RBI for permission to open a branch," RBI, Governor, Raghuram Rajan, said in the media.

Moreover, the reform agenda by Raghuram Rajan for banking sector included that the foreign lenders will now be encouraged to operate through wholly owned subsidiaries, added the media report.

"We would like them to participate more in our growth, but in exchange we would like more regulatory and supervisory control over local operations so that we are not blindsided by international developments," he added. Besides, the banks will have to comply with certain inclusion criteria in underserved areas in proportion to their expansion in urban areas.

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