Lok Sabha Question No. 3348 (UNSTARRED), answered on 2017-08-04
Subject: Bank Branch Expansion Policy
Ministry: FINANCE
Asked by: DEVENDRA (ALIAS) BHOLE SINGH SINGH, DILIP KUMAR MANSUKHLAL GANDHI, HARI MANJHI, MANHOR UNTWAL, JUGAL KISHORE SHARMA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

TO BE ANSWERED ON 4TH AUGUST 2017 (FRIDAYY SHRAVANA 13, 1939 (SAKA)

Bank Branch Expansion Policy

| 3348.   | SHRI DEVENDRA SINGH BHOLE: SHRI HARI MANJHI:   | SHRI DILIPKUMAR MANSUKHLAL GANDHI: SHRI MANOHAR UTAWAL:   |
|---------|------------------------------------------------|-----------------------------------------------------------|

Will the Minister of FINANCE be pleased to state:

- (6) the number of branches of PSBs set up in the rural areas during the current plan period/year/bank State/UT wise;
2. (a) the details of main features of branch expansion policy of Public Sector Banks (PSBs);

(c) whether there is any proposal for up new branches of PSBs in the adopted and developed as model villages under the Sansad Adarsh Gram Yojana and if the details thereof; setting villages SO,

(d) whether the Government has received the representations from the public representatives for opening of new bank branches of PSBs in the said if so, the details thereof and the action taken by the Government thereon: villages;

- (e) whether any survey has been conducted by the Government in this regard and if so, the details thereof; and
- the time by which new branches of PSBs are likely to be opened in the unbanked areas in the country?

## Answer

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

(a) Reserve Bank of India (RBI) has   rationalized its Branch Authorisation and  granted general permission to domestic Scheduled Commercial Banks (excluding Regional Rural Banks), including Public Sector Banks, to open banking outlets at any place in the country, without seeking approval of RBI in case, subject t0 at least 25 percent of the total number of financial year in unbanked rural centres (Tier $ and Tier 6 centres). Policy prior each being

- (b) Information is at Annex
- (c) Pursuant to a Government request to Public Sector Banks (PSBs) for provision of banking services in Sansad Adarsh Gram (SAG) through bank branch or through a fixed online interoperable Business Correspondent (BC) kiosk, PSBs have reported opening of 45 bank branches in Sansad Adarsh Gram villages point
- (d) RBI instructions require State Level Bankers Committees (SLBCs) to enable banks to identify the unbanked rural centres where wish to open a banking outlet; and banks are required to coordinate with the SLBC Convenor in this regard. Accordingly, representations received from public representatives regarding opening of new bank outlets in unbanked are communicated to SLBC Conveners. they ing villages
- (e) Banks consider proposals in the light of RBL's instructions, their business plans and commercial viability, and for assessing viability carry out survey a8 required.
- Banks not indicated any fixed time for this. have

## Annexure to the Lok Sabha question no 3348 dated 4.8.2017 on Bank Branch Expansion Policy'

Rural/Semi-urban Branches Opened by Public Sector Banks during the Financial Years 2012-13 to 2016-17

| State/UT                  | 2012-13   | 2013-14   | 2014-15   | 2015-16   | 2016-17   |
|---------------------------|-----------|-----------|-----------|-----------|-----------|
| Andaman & Nicobar Islands | 3         | 3         | 1         | 2         |           |
| Andhra Pradesh            | 172       | 251       | 255       | 144       | 80        |
| Arunachal Pradesh         | 10        | 13        | 4         | 2         | 4         |
| Assam                     | 73        | 133       | 50        | 36        | 18        |
| Bihar                     | 191       | 340       | 163       | 80        | 77        |
| Chandigarh                | 1         | 1         | 2         | 3         | 0         |
| Chhattisgarh              | 91        | 118       | 65        | 64        | 35        |
| Dadra & Nagar Haveli      | 3         | 5         | 2         | 1         | 2         |
| Daman & Diu               | 1         |           | 0         | 1         | 0         |
| Goa                       | 16        | 49        | 26        | 6         | 5         |
| Gujarat                   | 201       | 218       | 160       | 96        | 66        |
| Haryana                   | 131       | 187       | 147       | 57        | 37        |
| Himachal Pradesh          | 43        | 104       | 63        | 37        | 25        |
| Jammu & Kashmir           | 17        | 36        | 11        | 10        | 3         |
| Jharkhand                 | 89        | 144       | 111       | 48        | 43        |
| Karnataka                 | 215       | 407       | 272       | 131       | 74        |
| Kerala                    | 177       | 204       |           | 80        | 57        |
| Madhya Pradesh            | 121       | 209       |           | 64        | 54        |
| Maharashtra               | 235       | 375       | 209       | 152       | 72        |
| Manipur                   | 9         | 14        | 3         | 5         | 5         |
| Meghalaya                 | 7         | 16        | 1         | 3         | 1         |
| Mizoram                   | 2         | 7         | 5         | 6         | 2         |
| Nagaland                  | 12        | 10        |           | 3         |           |
| NCT Of Delhi              | 14        | 15        | 4         | 2         | 0         |
| Odisha                    | 137       | 246       | 194       | 125       | 70        |
| Puducherry                | 8         | 7         | 9         | 1         | 2         |
| Punjab                    | 212       | 300       | 218       | 97        | 48        |
| Rajasthan                 | 198       | 277       | 227       | 152       | 64        |
| Sikkim                    | 5         | 7         | 1         | 4         | 1         |
| Tamil Nadu                | 244       | 365       | 260       | 170       | 80        |
| Telangana                 | 96        | 111       | 143       | 88        | 40        |
| Tripura                   | 25        | 31        | 10        | 8         | 7         |
| Uttar Pradesh             | 461       | 949       | 499       | 235       | 128       |
| Uttarakhand               | 82        | 90        | 86        | 35        | 21        |
|                           | 169       | 251       | 184       | 85        | 67        |
| Total                     | 3,471     | 5,498     | 3,704     |           | 1,191     |

Source: Reserve Bank of India