The proposed relaxation is likely to accelerate branch rollouts in under-penetrated semi-urban and rural markets
FinTech BizNews Service
Mumbai, 6 February 2026: The Monetary Policy Committee (MPC) held its 59th meeting from February 4 to 6, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
The RBI Governor today made a Statement on Developmental and Regulatory Policies. This Statement sets out various developmental and regulatory policy measures relating to (i) Regulations; (ii) Payments System; (iii) Financial Inclusion; (iv) Financial Markets; and (v) Capacity Building.
Aparna Kirubakaran, Director, Crisil Ratings, points out:
“The RBI’s proposal to do away with prior approval for opening branches beyond 1,000 should ease operational constraints for large gold-loan non-banking financial companies (NBFCs). Once implemented, it will benefit well-established players that already operate extensive physical networks. The proposed relaxation is likely to accelerate branch rollouts in under-penetrated semi-urban and rural markets and improve access to gold-backed credit. On their part, NBFCs have to ensure accelerated expansion is accompanied by robust branch-level compliance, strong collateral management practices and adequate risk oversight.”
