Reserve Bank of India has permitted commercial banks to set up administrative offices and central processing centers (CPC)/service branches in rural and semi urban areas of the country. The move by the central bank comes as a step to increase the reach of banks to the interior parts of the country, still not touched by banking amenities. So far ther permission was granted only to regional rural banks (RRBs).

The apex bank is also open to giving permission to banks for setting up administrative offices and CPCs/service branches in the rural and semi urban cities of north eastern states and Sikkim, subject to reporting.

As per the 2001 census, centers with a population up to 49,999 are categorized as Tier-3 to Tier-6 centres.

The permission to scheduled commercial banks other than RRBs to set up branches in Tier 3 and Tier 6 cities was given by RBI in December 2009 itself. The recent notification however says that it has to be ensured that places where branches are being opened are not nearby bigger centers or localities.