Banks in India are opening new branches at a rapid pace, with over 3,829 new branches opened between June 2007 and June 2008, equivalent to around 10 new branches per day. While new private and international banks are focusing on opening branches in cities, the Reserve Bank of India has encouraged banks to open more branches in rural areas and northeastern states, where branch availability is relatively lower. Despite increasing automation and use of ATMs, the traditional physical branch model remains important for banks in India to serve both rural and urban customers.