Lok Sabha Question No. 629 (UNSTARRED), answered on 2016-11-18
Subject: Banking Facilities in Rural and Backward Areas
Ministry: FINANCE
Asked by: SRINIVAS KESINENI, HARI MANJHI, ELUMALAI VELLAIGOUNDER, JUGAL KISHORE SHARMA, DILIP KUMAR MANSUKHLAL GANDHI, RAVINDRA KUMAR RAY, VINOD KUMAR SONKAR

## GOVERNMENT INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

TO BE ANSWERED ON 18th NOVEMBER, 2016 (FRIDAY)KARTIKA 27, 1938 (SAKA)

## LOK SABHA UNSTARRED QUESTION No. 629

## Banking Facilities in Rural and Backward Areas

629. SHRI KESINENI NANI:

SHRI HARI MANJHI:

SHRI V. ELUMALAI:

SHRI JUGAL KISHORE:

SHRI DILIPKUMAR MANSUKHLAL GANDHI:

DR. RAVINDRA KUMAR RAY:

SHRI VINOD KUMAR SONKAR:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken note of lack of banking facilities in rurallbackward areas;
- (b) if so, the details thereof along with the normslguidelines laid down by the Reserve Bank of India for opening of bank branches in rurallbackward areas of the country;
- (c) the total number of branches opened by public and private sector banks and the number of the branches opened in rural and backward areas during the last three years and the current year; bank and State-wise;
- (d) the number of bank branches proposed to be opened in unserved rurallbackward areas; and
- (e) the manner in which Direct Benefit Transfer (DBT) is going to be implemented in the beneficiaries accounts?

## Answer

## The Minister of State in the Ministry of Finance (SHRI SANTOSH KUMAR GANGWAR)

(a) to (c) To promote financial inclusion, Reserve Bank of India (RBI) grants general permission to domestic Scheduled Commercial Banks including Public Sector Banks (excluding Regional Rural Banks) to open branches at any place in the country, without seeking approval of RBI in each case; subject to at least 25 percent of the total number of branches opened during a financial year should be in unbanked rural (Tier 5 and Tier 6) centres (population upto 9999). RBI has also specified that the total number of branches opened in Tier 1 centres (population 100000 and above) during the financial cannot exceed the total number of branches opened in Tier 2 to Tier 6 centres (population 99999) and all centres in the North Eastern States and Sikkim. prior year upto

Due to said branch opening norms, as on 30.06.2016 out of total bank branches of 133668 of   Scheduled Commercial Banks (SCBs) , 84389 (63.13%) bank branches are in rural and semi-urban areas The number of bank branches opened by public and private sector banks during the last three years and the current year is given in Annexure\_

- (d) As reported by State Level Bankers' Committees (SLBCs) , a total of 6593 villages have been identified and allotted among scheduled commercial banks (including Regional Rural Banks) for opening of branches:
- (e) Following process has been followed:
- Banks have taken to complete account opening and seeding Aadhaar number in all the DBT districts\_ steps
- DBT Cells have been constituted in departments wherever needed.
- IV. The Government of India, DBT is pushed through Aadhaar Based Payment System (ABPS) of National Payments Corporation of India (NPCI).
- I\_ Formation of DBT implementation Co-ordination Committee, along with State Government department concerned\_ at district level.
- V As of strengthening servicing infrastructure, BC network is strengthened and monitored through weekly video conference from Department of Financial part

## Number of branches opened by public and private sector banks during 2013-14,2014-15,2015-16 and 2016-17

|                            |                       | 2013-14   | 2013-14     | 2013-14   | 2013-14     |         |         |             |        |         |         | 2014-15   | 2014-15     | 2014-15   | 2014-15   | 2014-15   | 2014-15   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   | 2015-16 2016-17 (UP TO 30.06.2016)   |
|----------------------------|-----------------------|-----------|-------------|-----------|-------------|---------|---------|-------------|--------|---------|---------|-----------|-------------|-----------|-----------|-----------|-----------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| Region                     | State/UT              |           | SEMI- URBAN | URBAN     | METROITOTAL |         | RURAL   | SEMI- URBAN | URBAN  | METRO   | TOTAL   | RURAL     | SEMI- URBAN | URBAN     | METRO     | TOTAL     |           | SEMI- RURAL URBAN                    |                                      | METRO ITOTAL                         | URBAN                                | URBAN                                | URBAN                                | URBAN                                | URBAN                                | URBAN                                | URBAN                                | URBAN                                | URBAN                                | URBAN                                |
| CENTRAL REGION             | CHHATTISGARH          | 56        | 83          | 18        | 31          | 188     | 58      | 50          | 28     | 26      | 162     | 52        | 40          | 27        | 20        | 139       |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | MADHYA PRADESH        | 149       | 142         | 57        | 80          | 428     | 81      | 135         | 37     | 106     | 359     | 52        | 110         | 46        | 88        | 296       |           |                                      |                                      | 16                                   | 32                                   | 32                                   | 32                                   | 32                                   | 32                                   | 32                                   | 32                                   | 32                                   | 32                                   | 32                                   |
|                            | UTTAR PRADESH         | 750       | 278         | 157       | 150         | 1335    | 310     | 225         | 144    | 169     | 848     | 172       | 136         | 110       | 121       | 539       |           |                                      |                                      |                                      | 251                                  | 251                                  | 251                                  | 251                                  | 251                                  | 251                                  | 251                                  | 251                                  | 251                                  | 251                                  |
|                            | UTTARAKHAND           | 66        | 31          | 29        |             | 126     | 56      |             | 49     |         | 137     | 16        | 32          | 36        |           | 84        |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
| CENTRAL REGION Total       |                       | 1021      | 534         | 261       | 261         | 2077    | 505     | 442         | 258    | 301     | 1506    | 292       | 318         | 219       | 229       | 1058      |           | 13                                   |                                      | 25                                   | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  |
| EASTERN REGION             | ANDAMAN & NICOBAR IS  |           |             |           |             |         |         |             |        |         |         |           |             |           |           |           |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | BIHAR                 | 179       | 173         | 77        | 57          | 486     | 80      | 95          | 68     | 34      | 277     | 64        | 90          | 70        | 45        | 269       |           | 3                                    |                                      | 2                                    | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  | 15]                                  |
|                            | JHARKHAND             | 72        | 74          | 25        | 30          | 201     | 62      | 59          | 19     | 26      | 166     | 39        | 30          | 22        | 28        | 119       |           |                                      |                                      |                                      | 16]                                  | 16]                                  | 16]                                  | 16]                                  | 16]                                  | 16]                                  | 16]                                  | 16]                                  | 16]                                  | 16]                                  |
|                            | ODISHA                | 209       | 115         | 83        |             | 407     | 167     | 82          |        |         | 340     | 115       | 58          | 47        |           | 220       | 14        |                                      |                                      |                                      | 30                                   | 30                                   | 30                                   | 30                                   | 30                                   | 30                                   | 30                                   | 30                                   | 30                                   | 30                                   |
|                            | SIKKIM                |           |             |           |             | 14      |         |             |        |         |         |           |             |           |           |           |           |                                      |                                      |                                      | 2                                    | 2                                    | 2                                    | 2                                    | 2                                    | 2                                    | 2                                    | 2                                    | 2                                    | 2                                    |
|                            |                       |           |             |           | 55          | 443     | 135     | 69          | 81     | 73      | 358     | 198       | 108         | 130       | 79        | 515       | 21        | 17                                   |                                      |                                      | 60                                   | 60                                   | 60                                   | 60                                   | 60                                   | 60                                   | 60                                   | 60                                   | 60                                   | 60                                   |
| EASTERN REGION Total       | WEST BENGAL           | 183 653   | 95          | 110 301   | 142         | 1556    | 447     | 307         | 264    | 133     | 1151    | 421       | 289         | 271       | 152       | 1133      | 46        | 34                                   | 31                                   | 12                                   | 123                                  | 123                                  | 123                                  | 123                                  | 123                                  | 123                                  | 123                                  | 123                                  | 123                                  | 123                                  |
| NORTH EASTERN REGION       | ARUNACHAL PRADESH     |           | 460 13      |           |             | 16      |         |             |        |         |         |           |             |           |           |           |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | ASSAM                 | 69        | 79          |           |             | 192     | 26      | 32          | 33     |         | 91      | 50        | 46          | 28        |           | 124       |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | MANIPUR               |           |             |           |             | 24      |         |             |        |         |         | 2         | 4           | 2         |           |           |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | MEGHALAYA             |           | 9           |           |             | 24      |         |             | 2      |         |         |           |             | 5         |           | 12        |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | MIZORAM               |           |             |           |             |         | 2       | 3           | 3      |         | 8       |           |             | 3         |           |           | 5         |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | NAGALAND              |           |             |           |             | 13      |         |             |        |         |         |           |             |           |           |           |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | TRIPURA               | 10        |             | 15]       |             | 49      | 4       | 1           | 3      |         | 14      |           |             | 6         |           | 32        |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
| NORTH EASTERN REGION Total |                       | 103       | 150         | 79        |             | 332     | 42      | 48          | 42     |         | 132     |           |             | 46        |           | 192       |           |                                      |                                      |                                      | 9                                    | 9                                    | 9                                    | 9                                    | 9                                    | 9                                    | 9                                    | 9                                    | 9                                    | 9                                    |
|                            | CHANDIGARH            |           |             | 20        |             | 21      | 2       |             | 29     |         | 31      |           |             | 17        |           | 20        |           |                                      | 5                                    |                                      | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    |
| NORTHERN REGION            | HARYANA               | 228       | 111         | 140       | 23          | 502     | 137     | 99          | 126    | 13      | 375     | 59        |             | 100       | 12        | 223       |           |                                      | 18                                   |                                      | 24                                   | 24                                   | 24                                   | 24                                   | 24                                   | 24                                   | 24                                   | 24                                   | 24                                   | 24                                   |
|                            | HIMACHAL PRADESH      | 100       | 22          |           |             | 125     | 64      |             |        |         | 74      | 47        |             | 3         |           | 60        |           | 2                                    |                                      |                                      | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    | 5                                    |
|                            | JAMMU & KASHMIR       | 99        | 47          | 20        | 10          | 176     | 45      | 10          | 20     |         | 81      | 28        | 10 15       |           |           | 60        |           |                                      |                                      |                                      | 3                                    | 3                                    | 3                                    | 3                                    | 3                                    | 3                                    | 3                                    | 3                                    | 3                                    | 3                                    |
|                            | NCT OF DELHI          |           |             |           | 176         | 193     |         |             | 3      | 172     | 183     |           | 3           |           | 176       | 179       |           |                                      |                                      | 20                                   | 201                                  | 201                                  | 201                                  | 201                                  | 201                                  | 201                                  | 201                                  | 201                                  | 201                                  | 201                                  |
|                            | PUNJAB                | 423       | 147         | 57        | 30          | 657     | 173     | 114         | 58     | 43      | 388     | 86        | 87          | 36        | 25        | 234       |           |                                      |                                      |                                      | 25                                   | 25                                   | 25                                   | 25                                   | 25                                   | 25                                   | 25                                   | 25                                   | 25                                   | 25                                   |
| NORTHERN REGION Total      | RAJASTHAN             | 197       | 145         | 67        | 61          | 470     | 153     | 99          | 72     | 75      | 399     | 122       | 127         | 63        | 49        | 361       |           |                                      | 34                                   |                                      | 17 99]                               | 17 99]                               | 17 99]                               | 17 99]                               | 17 99]                               | 17 99]                               | 17 99]                               | 17 99]                               | 17 99]                               | 17 99]                               |
|                            | ANDHRA PRADESH        | 1057      | 479 146     | 308       | 300         | 2144    | 580     | 331         | 311    | 309 58  | 1531    | 343 85    | 296         | 228       | 55        | 1137      |           |                                      |                                      | 5                                    | 22                                   | 22                                   | 22                                   | 22                                   | 22                                   | 22                                   | 22                                   | 22                                   | 22                                   | 22                                   |
| SOUTHERN REGION            | KARNATAKA             | 156 316   | 183         | 103 154   | 45 135      | 450 788 | 144 175 | 150 153     | 118 91 | 132     | 470 551 | 111       | 100 106     | 65 74     | 138       | 305       |           |                                      |                                      |                                      | 27                                   |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | KERALA                |           | 247         | 76        |             | 381     | 12      | 160         | 83     |         | 255     | 13        | 94          | 63        |           | 429 170   |           |                                      |                                      | 12                                   |                                      |                                      |                                      | 19                                   | 19                                   | 19                                   | 19                                   | 19                                   | 19                                   | 19                                   |
|                            | LAKSHADWEEP           | 58        |             |           |             |         |         |             |        |         |         |           |             |           |           |           |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            |                       |           |             |           |             |         |         |             |        |         | 19      |           |             |           |           |           |           |                                      |                                      | 1                                    | 1                                    | 1                                    | 1                                    | 1                                    | 1                                    | 1                                    | 1                                    | 1                                    | 1                                    | 1                                    |
|                            | PUDUCHERRY TAMIL NADU | 287       |             |           | 122         | 15 768  | 174     | 230         | 84     | 130     | 618     | 95        | 171         | 53        | 126       | 445       |           | 14                                   |                                      |                                      |                                      |                                      | 38                                   | 38                                   | 38                                   | 38                                   | 38                                   | 38                                   | 38                                   | 38                                   |
|                            | TELANGANA             | 70        | 282         | 77 35     | 110         | 274     | 78      | 90          |        |         | 301     | 44        | 70          | 36        |           | 246       | 44        |                                      |                                      | 13                                   | 13                                   | 13                                   | 13                                   | 13                                   | 13                                   | 13                                   | 13                                   | 13                                   | 13                                   | 13                                   |
| SOUTHERN REGION Total      |                       | 889       | 59 923      |           | 412         | 2677    | 589     | 789         |        | 418 418 | 2214    | 349       | 543         | 293       | 96 415    | 1600      | 24        |                                      | 34                                   |                                      |                                      | 51                                   |                                      | 153                                  | 153                                  | 153                                  | 153                                  | 153                                  | 153                                  | 153                                  |
|                            | DADRA & NAGAR HAVELI  |           |             | 453       |             |         |         |             |        |         |         |           |             |           |           |           |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
| WESTERN REGION             | DAMAN & DIU           |           |             |           |             |         |         |             |        |         |         |           |             |           |           |           |           |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
|                            | GOA                   |           |             |           |             | 57      | 20      | 12          |        |         |         |           |             |           |           | 10        |           |                                      |                                      |                                      |                                      | 2 46                                 | 2 46                                 | 2 46                                 | 2 46                                 | 2 46                                 | 2 46                                 | 2 46                                 | 2 46                                 | 2 46                                 |
|                            | GUJARAT               | 25 266    | 32 118      | 50        |             | 559     | 124     | 104         | 64     | 132     | 32      | 424 58    | 73          | 53        | 115       | 299       |           |                                      | 23                                   | 561                                  | 25                                   | 27                                   |                                      |                                      | 59                                   | 59                                   | 59                                   | 59                                   |                                      |                                      |
|                            | MAHARASHTRA           | 343       | 213         | 69        | 125 232     | 857     |         | 159         | 140 56 |         | 208     | 563 112   | 187         |           |           | 49 213    |           | 13                                   |                                      | 50                                   | 107                                  |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |                                      |
| WESTERN REGION Total       |                       | 636       | 372         | 119       | 357         | 1484    | 305     | 258         | 120    | 3401    | 1023    | 177       | 265 102     | 328       | 872       |           |           |                                      |                                      |                                      | 12                                   |                                      |                                      | 32                                   |                                      |                                      |                                      |                                      |                                      |                                      |

## ANNEXURE TO LOK SABHA Q. NO. 629 FOR 18.11.2016