Lok Sabha Question No. 308 (STARRED), answered on 2018-03-16
Subject: Bank Branches in Rural and Backward Areas
Ministry: FINANCE
Asked by: MANHOR UNTWAL

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

TO BE ANSWERED ON 16 MARCH 2018(FRIDAYY PHALGUNA 25, 1939 (SAKA)

STARRED QUESTION No. *308

## Bank Branches in Rural and Backward Areas

## *308. SHRI MANOHAR UTAWAL:

Will the Minister of FINANCE be   pleased to state:

- (a) the norms/guidelines prescribed by the Reserve Bank of India (RBI) for opening of bank branches in rural/backward areas of the country;
- (b) whether the Government has taken cognizance of deficit of banking facilities in such areas of the country during the last three years and the current year and if the details thereof;
- (c) the number of branches of public sector and private sector banks opened along with the number of branches out of these bank branches opened in rural and backward areas of the country during the said period; and
- (d) the number and the details of proposals received for opening branches of banks in deprived rural/backward areas of the country?

## Answer THE  FINANCE MINISTER (SHRI ARUN JAITLEY)

- (a) to (d):- A Statement is laid on the Table of the House.

<!-- image -->

Statement referred t0 in reply to parts (a) to (d) of Lok Sabha Starred Question No.*308 position) for 16 March 2018 by Shri Manohar Utawal, MP regarding "Bank Branches in Rural and Backward Areas" (8t

- (a) As per extant guidelines dated 18.5.2017 on rationalizing of Branch Authorisation Policy; Reserve Bank of  India (RBI) has granted   general   permission to domestic Scheduled Commercial Banks (excluding Regional Rural Banks), to open banking outlets at any place in the country, without   seeking approval of RBI in each   case, subject t0 at least 25 percent of the total number of  banking outlets   opened   during a financial year in unbanked rural centres with population less than 10,000. For this purpose, banking outlets opened in any centre population less than 50,000 in North Eastern states and Sikkim and also Left Extremism (LWE) affected districts as notified by the Government of India are also considered as equivalent to opening of banking outlets in unbanked rural centres: prior being having Wing
- (b) After launch of Pradhan Mantri Jan-Dhan Yojana (PMJDY), all rural and semi urban areas have been divided into 1.59 lakh Sub Service Areas (SSA), where each SSA covered 1,000 whereas 0.33 lakh SSAs have been covered with bank branches:
- (c) As per RBI data, the total number of branches of public sector and private sector banks opened all over the country and in rural areas in financial year 2014-15, 2015-16, 2016-17, 2017-18 (till  30.9.2017) is placed at Annexure. This shows that 71% of the new branches opened during 2014-15 to 2017-18 (till 30.9.2017) were opened by Public Sector Banks (PSBs). rural
- Committees (SLBCs) to enable banks to identify the unbanked rural centres where they wish to open a banking outlet; and banks are required to coordinate with the SLBC Convener in this Accordingly. representations received from public representatives regarding opening of new banking outlets in unbanked villages are communicated t0 SLBC Conveners. regard.

Annexure to the Lok Sabha Starred Q No 308 for 8th position for 16.3.2018

| Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   | Number of Branches Opened by Public and Private Sector Banks during Financial Years 2014-15 to 2017-18 @ill September 2017)   |
|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                               | 2014-15                                                                                                                       | 2014-15                                                                                                                       | 2015-16                                                                                                                       | 2015-16                                                                                                                       | 2016-17                                                                                                                       | 2016-17                                                                                                                       | 2017-18 (till 30.9.2017)                                                                                                      | 2017-18 (till 30.9.2017)                                                                                                      | Total branches opened during 2014-15 to 2017- 18 (till 30.9.2017)                                                             | Total branches opened during 2014-15 to 2017- 18 (till 30.9.2017)                                                             |
|                                                                                                                               | RURAL                                                                                                                         | Total                                                                                                                         | RURAL                                                                                                                         | Total                                                                                                                         | RURAL                                                                                                                         | Total                                                                                                                         | RURAL                                                                                                                         | Total                                                                                                                         | RURAL                                                                                                                         | Total                                                                                                                         |
| PUBLIC SECTOR BANKS (PSBs)                                                                                                    | 2007                                                                                                                          | 5714                                                                                                                          | 1084                                                                                                                          | 3336                                                                                                                          | 663                                                                                                                           | 2150                                                                                                                          | 119                                                                                                                           | 331                                                                                                                           | 3873                                                                                                                          | 11531                                                                                                                         |
| PRIVATE SECTOR BANKS                                                                                                          | 495                                                                                                                           | 1941                                                                                                                          | 618                                                                                                                           | 2814                                                                                                                          | 367                                                                                                                           | 186[                                                                                                                          | 84                                                                                                                            |                                                                                                                               | 1564                                                                                                                          | 7127                                                                                                                          |
| Total                                                                                                                         | 2502                                                                                                                          | 7655                                                                                                                          | 1702                                                                                                                          | 6150                                                                                                                          | 1030                                                                                                                          | 4011                                                                                                                          | 203                                                                                                                           | 842                                                                                                                           | 5437                                                                                                                          | 18658                                                                                                                         |
| Percentage contribution ot PSBs in opening branches                                                                           | 80.22                                                                                                                         | 74.64                                                                                                                         | 63.69                                                                                                                         | 54.24                                                                                                                         | 64.37                                                                                                                         | 53.60                                                                                                                         | 58.62                                                                                                                         |                                                                                                                               |                                                                                                                               | 61.80                                                                                                                         |

Source: Reserve Bank of India (RBI)