Over 450,000 villages now have access to banking

Financial inclusion to be hastened, says RBI

GN Bureau | August 31, 2017


#unbanked   #villages   #financial inclusion   #RBI  


 Over 450,000 villages now have access to banking in one form or the other, said the RBI in its annual report.

 
“As on March 31, 2017, 96 percent (472,136 villages) of the total villages allotted had been covered comprising of 19,875 villages through brick and mortar branches, 431,359 villages through BCs (banking correspondents) and 20,902 villages through other modes,” said the RBI.
 
The report said that the Reserve Bank had taken several steps to provide banking facilities in all the unbanked villages in the country.
 
A roadmap to cover villages with population more than 2,000 was first rolled out in 2010. A total of 74,414 villages with population more than 2,000 were identified and allotted to various banks (public sector banks, private sector banks and regional rural banks) through State Level Bankers’ Committees (SLBCs) for coverage. All the identified villages have been provided banking services through branches or business correspondents or through other modes such as ATMs and mobile vans.
 
In June 2012, a roadmap was rolled out to provide banking services to unbanked villages with population less than 2,000. A total of 491,825 unbanked villages across the country with a population of less than 2,000 were allotted to various banks through SLBCs for coverage.
 
The report went on to say that “as integrity and consistency of data are crucial for framing policy and designing strategies, an Automated Data Extraction Project from banks to the Reserve Bank and a portal to capture data relating to natural calamities will be implemented to strengthen the existing processes for information and data collection from banks on a real time basis”.
 
It said that the role of the Reserve Bank in the area of financial inclusion involves developing policies towards ensuring the availability of banking services at affordable costs for those vulnerable sections of society who have hitherto been left outside the scope of formal financial services due to factors such as illiteracy, lack of banking infrastructure, difficulty in physical access to such services in far flung areas and perceived lack of creditworthiness
 
 
Strengthening the Banking Correspondent (BC) model has been one of the important development agendas, recognising the significant role played by BCs in providing last mile financial services in the underbanked and unbanked regions of the country. Having a BC registry and certification process in place would go a long way in strengthening the BC model.
 
“A BC registry is proposed to be structured as a database of comprehensive information pertaining to the existing or potential business correspondents. The BC registry will give a holistic view of under-banked and less penetrated areas in a region and accordingly the delivery of financial services can be improved in such areas through appropriate policy interventions. It will help in effective monitoring and oversight of BC operations. It is expected that banks and the regulators would utilise this database to gather critical insights and frame policies accordingly for strengthening the BC infrastructure. The Reserve Bank has developed the framework for the BC registry and IBA is in the process of setting up the online registry portal,” the RBI report added.

Comments

 

Other News

‘MAGA’ + ‘MIGA’ = ‘MEGA’ partnership for prosperity: Modi

Prime minister Narendra Modi has linked the dream of a Viksit Bharat with US president Donald Trump’s slogan, ‘Make America Great Again’, or ‘MAGA’, saying that when these two democracies work together, i.e. ‘MAGA’ plus ‘Make India Great Again’ (‘

ONOE: Anti-federalism or pro-reform?

The government`s move to implement ‘One Nation, One Election’ (ONOE) has ignited widespread debate. On one hand, it offers tangible benefits, such as removing the possibility of a governance paralysis and reducing election costs. On the other hand, the opposition and sections of civil society s

PM Surya Ghar: Muft Bijli Yojana completes first year

On February 13, 2025, the PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) will mark its first anniversary, celebrating a year of empowering households with affordable solar energy and accelerating India’s transition to a sustainable future. Launched by prime minister Narendra Modi on Febru

How to leverage AI to solve urgent global issues

The world seems to be hurling towards World War III in all the possible scenarios: hot war, cold war, and proxy war. The battleground seems to have expanded beyond physical to digital or virtual/mixed reality with technology like drones. Moreover, the line between civilian and military targets seems to hav

Budget: Progress towards SDGs and areas for improvement

The Union Budget 2025-26 outlines India`s vision for economic and social growth while also reflecting the country`s commitment to sustainable development. As India moves closer to the 2030 deadline for the United Nations’ Sustainable Development Goals (SDGs), this budget presents a balanced approach

Repo rate cut by 25 basis points to 6.25%

The Reserve Bank of India has, for the first time in five years, reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25% with immediate effect. Consequently, the standing deposit facility (SDF) rate will stand adjusted to 6.00% and the marginal

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter