Please refer to Branch Licensing Policy issued vide BPRD Circular No.19 dated June 16, 2004 and subsequent instructions issued vide BPRD Circular No.31 dated October 5, 2004, BPRD Circular No.34 dated November 02, 2004 and BPRD Circular Letter No.1 dated January 4, 2005.

2. In order to enhance financial penetration of banking system, State Bank has decided to amend Branch Licensing Policy as follows:-

i) Atleast 20% of the additional branches planned to be opened by banks under Annual Branch Expansion Plan, shall be opened in “Rural / Underserved Areas”. For this purpose, “Rural / Underserved Areas” means villages and small towns and also includes those Tehsil Headquarters where no branch of any bank already exists.

ii) Banks interested in opening branches/sub-branches in “Rural / Underserved Areas” over and above the requirement prescribed under Para 2(i) above, can approach the State Bank any time for permission to open such branches. Their requests will be considered as per criteria prescribed in the Branch Licensing Policy.

3. Other instructions on the subject will remain unchanged.

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