The Reserve Bank of India (RBI) has allowed Regional Rural Banks (RRBs) to open branches in Tier-II cities without taking its permission.

A notification issued by RBI said the RRBs would be allowed to open branches in Tier-II cities with a population of 50,000 to 99,999 as per 2001 census with certain conditions. It said the move would enhance the penetration of banking services in Tier-II centres.

RBI has also decided to delegate powers to the regional offices of the Reserve Bank to take decision on the applications of RRBs for opening, shifting, merger or conversion of branches without reference to the concerned Empowered Committees in order to expedite the process.