Question:medium

In ..............., RBI relaxed its policy for opening of new bank branches, allowing commercial banks to open new outlets in major cities without seeking prior approval.

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Remember: September 2013 = RBI allowed branch expansion with less red tape.
Updated On: Jan 14, 2026
  • September 2013
  • September 2014
  • October 2013
  • October 2014
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The Correct Option is A

Solution and Explanation

In September 2013, the Reserve Bank of India (RBI) implemented a significant policy update to foster broader banking service dissemination throughout India. Previously, commercial banks were required to obtain the RBI's prior authorization for establishing new branches, particularly in metropolitan and urban centers. To advance financial inclusion and enhance banking accessibility, the RBI eased this requirement, permitting financially stable banks to inaugurate branches in major cities without needing specific approval for each new location. This initiative was integrated within wider banking sector reforms designed to boost competition, extend reach, and improve customer service. The eased regulation enabled banks to react more swiftly to market needs and establish branches where required, thereby reinforcing their operational footprint. Consequently, the appropriate answer is option (A) September 2013.
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