In 2005, the Reserve Bank of India (RBI) initiated a bank licensing policy reform that incentivizes banks to expand new branches in the underbanked districts defined as having a population-to-bank branch ratio higher than the national average. This paper uses a regression discontinuity design to explore the impacts of this bank branch expansion policy on labor market outcomes. Using RBI’s Master Office File on bank branch statistics matched with household data from the National Sample Survey, I find that the bank branch expansion policy caused a statistically significant increase in individuals’ daily wage and weekly total labor earnings. I also find that the individuals are less likely to report being casual wage laborers but more likely to report being self-employed in the treated districts relative to the control districts.