Lok Sabha Question No. 3127 (UNSTARRED), answered on 2018-01-05
Subject: Regional Rural Banks/Grameen Banks
Ministry: FINANCE
Asked by: LAXMAN GILUWA, RAM TAHAL CHOUDHARY

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA

## UNSTARRED QUESTION NO. 3127

TO BE ANSWERED ON THE JANUARY 05, 2018/PAUSHA 15, 1939 (SAKA)

## Regional Rural Banks/Grameen Banks

†3127: SHRI LAXMAN GILUWA,  SHRI RAM TAHAL CHOUDHARY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Branches of Regional Rural Banks (RRBs)/Grameen Banks are inadequate in  the  country  to  facilitate  the  payments  made  under  various  schemes,  if  so,  the  details thereof;
- (b)    the  number  of  the  Regional  Rural  Banks/Grameen  Banks  branches  functioning  in  the country in the year 2014 as well as their number at present, State/UT-wise;
- (c)  whether  the  Government has formulated any parameter for opening of RRBs/Grameen Banks in rural areas and if so, the details thereof; and
- (d)  the efforts made/being made by the Government to improve the banking facility in rural areas?

## Answer

## Minister of State in the Ministry of Finance

## (SHIV PRATAP SHUKLA)

- (a)  to    (c): RBI  vide  its  Master  Circular  dated  1 st July,  2015  on  Branch  Licensing  has prescribed guidelines for opening of RRBs' branches.  As per these guidelines, RRBs are required to decide on the policy and strategy for setting up new branches/offices etc., taking into account the yearly business plan, potential for business and profitability of the proposed branches, efficacy of the internal control system etc.  These guidelines, inter-alia, provide for opening of RRB branches in Tier II to Tier VI centres (with population of up to 99,999 as per Census  2001)  without  having  the  need  to  take  prior  permission  from  RBI  in  each  case, provided they fulfil certain conditions.

As  per  NABARD,  as  on  31 st March  2017,  there  were  21,422  branches  of  Regional  Rural Banks (RRBs) in the country. Besides, the RRBs have 3933 number of ultra-small branches which also provide limited banking services.  The State/UT-wise list of number of branches of RRBs as on 31 st March, 2014 and 31 st March, 2017 is enclosed as Annexure .

(d): As per RBI directives, banks have been given freedom to open branches in Tier II to Tier VI centres without prior permission of RBI.  Further, to improve the banking facilities in rural areas,  the  Banks  have  been  given  freedom  to  appoint  Business  Correspondents  who provides doorstep banking in rural areas, by appropriately leveraging technology.

To  improve  the  banking  facilities  across  the  country,  Pradhan  Mantri  Jan-Dhan  Yojana (PMJDY) was started w.e.f. 28.08.2014 with the aim to provide minimum one bank account per  household.    Under  the  Yojana,  as  on  20.12.2017,  30.75  crore  PMJDY  accounts  have been opened across the country, out of which 18.08 crore accounts are in rural/semi-urban areas.  Account holders under PMJDY, do not require to maintain minimum balance.  Under the Yojana, account holders are issued RuPay card with an inbuilt accidental insurance cover of Rs.1 lakh.

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## Annexure to Lok Sabha Unstarred Question No. 3127 for 05.01.2018

## No. of Branches (State/UT-wise) functioning in the country

| Sr. No.   | Name of State/UT   | Total No. of Branches as on 31.03.2014   |   Total No. of Branches as on 31.03.2017 |
|-----------|--------------------|------------------------------------------|------------------------------------------|
| 1         | ANDHRA PRADESH     | 1760                                     |                                      924 |
| 2         | ARUNACHAL PRADESH  | 27                                       |                                       28 |
| 3         | ASSAM              | 453                                      |                                      473 |
| 4         | BIHAR              | 1859                                     |                                     2106 |
| 5         | CHHITTISGARH       | 582                                      |                                      602 |
| 6         | GUJARAT            | 593                                      |                                      732 |
| 7         | HARYANA            | 542                                      |                                      630 |
| 8         | HIMACHAL PRADESH   | 188                                      |                                      263 |
| 9         | JAMMU & KASHMIR    | 338                                      |                                      343 |
| 10        | JHARKHAND          | 442                                      |                                      443 |
| 11        | KARNATAKA          | 1547                                     |                                     1771 |
| 12        | KERALA             | 535                                      |                                      615 |
| 13        | MADHYA PRADESH     | 1201                                     |                                     1304 |
| 14        | MAHARASHTRA        | 680                                      |                                      731 |
| 15        | MANIPUR            | 28                                       |                                       22 |
| 16        | MGEHALAYA          | 91                                       |                                       94 |
| 17        | MIZORAM            | 75                                       |                                       84 |
| 18        | NAGALAND           | 10                                       |                                       10 |
| 19        | ODISHA             | 951                                      |                                      991 |
| 20        | PUDUCHERRY         | 32                                       |                                       40 |
| 21        | PUNJAB             | 340                                      |                                      407 |
| 22        | RAJASTHAN          | 1236                                     |                                     1464 |
| 23        | TAMIL NADU         | 417                                      |                                      573 |
| 24        | TELANGANA          | ---                                      |                                     1165 |
| 25        | TRIPUA             | 138                                      |                                      144 |
| 26        | UTTAR PRADESH      | 3819                                     |                                     4218 |
| 27        | UTTARAKHAND        | 260                                      |                                      286 |
| 28        | WEST BENGAL        | 938                                      |                                      959 |
|           | ALL INDIA TOTAL    | 19082                                    |                                    21422 |

Source: NABARD