Question

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.

• A. September 2013
• B. September 2014
• C. October 2013
• D. October 2014

Hint:

Remember: September 2013 = RBI allowed branch expansion with less red tape.

Answer 1

The Correct Option is A

In September 2013, the Reserve Bank of India (RBI) introduced an important policy change to promote the expansion of banking services across India.
Before this change, commercial banks needed to seek prior approval from the RBI to open new branches, especially in metropolitan and urban areas.
To encourage financial inclusion and expand banking access, the RBI decided to relax this condition and allowed financially sound banks to open branches in major cities without obtaining individual prior approval for each outlet.
This move was part of broader banking sector reforms aimed at making banking more competitive, increasing reach, and providing better services to customers.
The relaxation helped banks respond faster to market demand and set up new branches where needed, thus strengthening their network.
Therefore, the correct answer is option (A) September 2013.