In conclusion of this section, let me also add that the Reserve Bank looks forward to more active play in the Saving Bank segment with banks coming out with some customer friendly innovations especially aimed at attracting low income households, presently outside the banking sector. Liberalization of the branch authorization policy 38. The fifth and last issue is Liberalization of the Branch Authorization Policy.
The thrust of the Reserve Bank’s branch expansion policy since 1962, when banks were first mandated to open branches in unbanked/banked centres in the ratio of 2:1, has been to ensure banking penetration into the underbanked areas of the country.