"no administrator approval" for new users, but e-mail is still sent

In "User settings" under "Public registrations" (by the way it has to be "Public registration") select the 2nd option ("Visitors can create accounts and no administrator approval is required"). Further down uncheck the "Require e-mail verification when a visitor creates an account" check box.

Logically, with these settings, no e-mail should be sent to the user upon new account creation. Drupal, however, still sends an e-mail.

Is this the expected behavior? If yes, it does not make much sense. Thanks