The commercial banks in Karnataka have not been able to prove their caliber as they are lagging behind the target set by the Reserve Bank of India for the banks in the state to conclude the Financial Inclusion Plan successfully by March 2012.
Under Financial Inclusion Plan the Central Bank has set the target of providing basic banking facilities to all the villages with population above 2,000 by March 2012.
The banks in Karnataka were allocated a total of 2,253 villages that were to be equipped with basic banking facilities before March 2012 According to a report the banks in Karnataka were able to cover only 1,075 villages under the facility by December last year.
The Chairman of State Level Bankers committee Mr Basant Seth said “Certain discrepancies like duplication or overlapping of villages, inclusion of villages already having branches, and such others were observed and subsequently the target was revised. Thee banks have now been asked to submit the monthly progress made in new formats prescribed by RBI and ministry of finance indicating revised villages,”
As a solution to the problem RBI has suggested the banks in Karnataka to follow one from the two models of one district - many banks or One district — one bank - to achieve the financial inclusion programme.
However here Corporation Bank needs to appreciated as it as already completed the task of extending banking facilities to 124 villages that were allotted to the bank, well ahead of time.