Press Information Bureau

Government of India

Ministry of Finance

19-August-2011 16:31 IST

Extension of Reach of Banking Services

The Reserve Bank of India (RBI has reported that as on March 31, 2011 there are 89,396 Commercial Bank branches in the country, out of which 33,463(37.4%) bank branches are in the rural areas, 22,526(25.2%) in semi-urban areas, 17,676(19.8%) in urban areas and 15,731(17.6%) are in Metropolitan areas. The RBI has also reported that the all India average population per branch was 13,503 as on 31st March, 2011.

In order to extend the reach of banking services, banks were advised in 2010-11 to provide appropriate banking facilities to habitations having a population in excess of 2000 (as per 2001 census) by March, 2012, using the Business Correspondent and other models, with appropriate technology back up. Approximately 73,000 such habitations across the country have been identified and allocated to Public Sector Banks, Regional Rural Banks, Private Sector Banks and Cooperative Banks for extending banking services by March, 2012. As per reports received from Banks, 29,569 such villages have been covered as on 31.03.2011.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.

DSM/SS/PM

Access to banking services expanded through mandated use of business correspondents and technology to reach underserved habitations. Banks were advised to extend banking facilities to habitations exceeding two thousand inhabitants using the Business Correspondent model and other outreach mechanisms with appropriate technology; approximately seventy three thousand habitations were identified and allocated among Public Sector Banks, Regional Rural Banks, Private Sector Banks and Cooperative Banks for coverage, and bank reports show progress with a specified number of habitations covered as of the reporting date.