Banks may branch out, set up ATMs sans RBI blessing

Here is the beginning of my post. And here is the rest of it.Banks planning new branches and ATMs may no longer require a mandatory approval from RBI. The government is considering a proposal to de-license bank branches and ATMs in the country. The move is in tune with the likely findings of the committee on financial sector reforms headed by Raghuram G Rajan. It is understood from official sources that members of the committee are in favour of abolishing licencing for bank branches and ATMs, starting with rural and semi-urban areas. “We are discussing various proposals pertaining to financial sector reforms with the government and this is one of them,” one of the members said. The opening of branches by banks is governed by the provisions of section 23 of the Banking Regulation Act 1949. Accordingly, banks cannot open a new place of business in India or abroad without RBI approval