RBI to soon release guidelines on new bank branches

The Reserve Bank of India (RBI) would soon release guidelines for implementation of its proposal to locate at least quarter of new bank branches in unbanked areas that generally fall in the rural areas.

"RBI will issue guidelines for 25% rural branches soon," a banker present at the post-policy meeting today said.

In its annual monetary policy announcement on May 3, the RBI had asked banks to have 25% of their new branches in Tier-V and VI centres.

The RBI today held the customary post-policy meet with bankers wherein it apprised them of the changes announced in the annual policy for 2011-12.

The central bank was represented at the meeting by deputy governors Shyamala Gopinath and Anand Sinha while nine bankers, including Indian Overseas Bank chairman and managing director M Narendra, were present.

Issues relating to Basel II and III norms were also discussed at the meeting, bankers said.