Tuesday, November 8, 2011

Finance Ministry instruct banks to cover every under-banked district by September 12

With the motive to make banking services accessible to every citizen of the country Finance ministry has instructed the banks to open branches in locations with a population of more than 5,000 in the under-banked districts.

In the mean time banks have already been working under the Financial Inclusion Plan which aims at proving banking facilities to every village in the country with a population of more than 2,000 by March 2012. For the purpose banks have been following different models to cover the villages apart from conventional branch banking method which includes business correspondents, mobile vans etc.

There are still 296 districts in the country which are unbanked and the Reserve Bank of India has asked the banks to bring them under the banking network by opening branches by September 12th.

Finance Ministry said “Such branches could initially have lesser staff, say 2 persons, with ATM facilities.” It also shared the idea of expanding the branch strength according to the growth in business. Besides, it also appealed to the banks to open as many braches as possible in areas with population of more than 10,000.

1 comment:

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