It is expected that RBI will allow Indian Banks to branch out as well as financial companies who have a non banking background (NBFC's) but have a strong presence in rural areas and semi urban areas and who are in the list of getting the banking license from the RBI.
As stated by the Kotak Mahindra's President- Consumer Banking, K. V. S. Manian that they have increased their target of opening branches from 25 - 35 percent to 30 to 40 percent. The procedure to obtain the license is transparent and hassle free. Indian banks are going to be encouraged by the Government and RBI to open new branches.
As per the governor of the RBI Raghuram Rajan who stated that the central bank will soon give an open door for banks to set up their branches wherever they want especially in the rural areas.
The fact of the matter is, banks are a bit skeptical to open branches in rural areas due to the expenses incurred by them towards the cost of operating.