Lok Sabha Question No. 2878 (UNSTARRED), answered on 2018-08-03
Subject: Bank Service in Rural Areas
Ministry: FINANCE
Asked by: SURESH KODIKUNNIL, NAGENDRA KUMAR PRADHAN, HARI MANJHI, RAVINDRA KUMAR PANDEY, BALABHADRA MAJHI, NISHIKANT  DUBEY, RANJANBEN BHATT

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

## LOK SABHA UN-STARRED QUESTION No. 2878

TO BE ANSWERED ON 3 AUGUST 2018 (FRIDAY) SHRAVANA 12, 1940 (SAKA)

## Bank Service in Rural Areas

2878 . SHRI KODIKUNNIL SURESH:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI HARI MANJHI:

SHRI RAVINDRA KUMAR PANDEY:

SHRI BALABHADRA MAJHI:

SHRI NISHIKANT DUBEY:

SHRIMATI RANJANBEN BHATT:

Will the Minister of FINANCE be pleased to state:

- (a) whether the banking services are badly affected in rural areas, if so, the details thereof and the reasons therefor along with the total rural population covered by banking service and ATMs at present; State/UT-wise including Odisha;
- (b) whether the Government proposes to provide the banking service at panchayat level in rural areas, if so, the details thereof and the number of Panchayats that have not been covered with banking facility so far along with the time period by State/UT-wise including Gujarat;
- (c) whether the Government has prescribed any yardstick to open bank branches in the country and if so, the details thereof along with the percentage of population that have not been covered according to such yardstick;
- (d) the practical problem faced by the Government to facilitate banking services at panchayat level areas and the corrective measures taken/being taken by the Government in this regard;
- (e) the manner in which the Direct Benefit Transfer scheme is likely to be implemented in the rural branches; and
- the steps taken to enhance the penetration of banking services at Panchayat level?

## Answer

## The Minister of State in the Ministry of Finance (SHRI SHIV PRATAP SHUKLA)

(a) to As per extant   guidelines dated 18.5.2017 on rationalizing Branch Authorization Policy, Reserve Bank f India 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 RBl in each case, subject to at least 25 percent of the total number of banking outlets opened during a financial year being in unbanked rural centres with population less than 10,000. prior

As informed by Reserve Bank of India   (RBI) , as on 31.3.2018, 50,748 (35.57%, branches out of 1,42,651 total branches of Scheduled Commercial Banks are in rural centres, i.e. centres having population less than 10,000. have further informed that details of rural population covered by banking services and ATMs are not available with them. However, StatelUT-wise number of bank branches of Scheduled Commercial Banks in rural centres as on 31.03.2018 is at Annexure-1\_ StatelUT-wise number of ATMs as on 01.08.2018 is at Annexure-2. They

Mantri  Jan Dhan Yojana (PMJDY), all the villages across the entire country have been mapped by banks into 1.59 lakh Sub-service Areas (SSAs), based on the criteria to 1000 1500 households Out of total SSAs, 0.33 lakh SSAs are covered by bank branches and 1.26 lakh SSAs without bank branches have been covered with inter-operable Business Correspondents (BCs)

As informed by Direct Benefit Transfer (DBT) Mission, Cabinet Secretariat under DBT benefits like wage payments, fuel subsidies, food grain subsidies etc. are sent directly into the beneficiaries' account The benefits are transferred using preferably Aadhaar Payment Bridge (APB) , or through NEFTIRTGS

Annexure-1 as referred to in Para 2 of reply to the Lok Sabha Un-starred question no. 2878 for 03.08.2018 regarding Bank Service in Rural Areas

Number of Functioning Branches of Scheduled Commercial Banks as on 31.03.2018 State/UTs -wise

| Region/Statel UTs    | RURAL        |
|----------------------|--------------|
| CHHATTISGARH         | 1,063        |
| MADHYA PRADESH       | 2,306        |
| UTTAR PRADESH        | 7,716        |
| UTTARAKHAND          | 938          |
| Total                | 12,023       |
| EASTERN REGION       |              |
| ANDAMAN & NICOBAR IS | 23           |
| BIHAR                | 3,266        |
| JHARKHAND            | 1,348        |
| ODISHA               | 2,568        |
| SikkiM               | 72           |
| WEST BENGAL          | 3,662        |
| Total                | 10,939       |
| NORTH EASTERN REGION |              |
| ARUNACHAL PRADESH    | 73           |
| ASSAM                | 309          |
| MANIPUR              | 80           |
| MEGHALAYA            | 170          |
| MIZORAM              | 67           |
| NAGALAND             | 53           |
| TRIPURA              | 235          |
| Total                | 1,987        |
| NORTHERN REGION      |              |
| CHANDIGARH           | 11           |
| HARYANA              | 1,616        |
| HIMACHAL PRADESH     | 1,209        |
| JAMMU & KASHMIR      | 890          |
| NCT OF DELHI         | 68           |
| PUNJAB               | 2.534        |
| RAJASTHAN            | 2.853        |
| Total                | 9,181        |
| SOUTHERN REGION      |              |
| ANDHRA PRADESH       | 2,383        |
| KARNATAKA            | 3,485        |
| KERALA               |              |
| LAKSHADWEEP          | 6            |
| PUDUCHERRY           | 51           |
| TAMIL NADU           | 2,926        |
| TELANGANA Total      | 1,536 10,718 |
| WESTERN REGION       |              |
| DADRA & NAGAR HAVELI | 14           |
| DAMAN & DIU          | 3            |
| GOA                  | 279          |
| GUJARAT              | 2,488        |
| MAHARASHTRA          | 3,116        |
| Total                | 5,900        |
| AII India            | 50,748       |

Source: RBI

Annexure-2 as referred to in Para 2 of reply to the Lok Sabha Un-starred question no. 2878 for 03.08.2018 regarding Bank Service in Rural Areas State/UT-wise number of ATMs as on 31.03.2018

| State/UT           |   ATMs of Scheduled Commercial Banks and White Label ATMs |
|--------------------|-----------------------------------------------------------|
| ANDAMAN & NICOBAR  |                                                       115 |
| ANDHRA PRADESH     |                                                     10436 |
| ARUNACHAL PRADESH  |                                                       248 |
| ASSAM              |                                                      3805 |
| BIHAR              |                                                      7949 |
| CHANDIGARH         |                                                       648 |
| CHHATISGARH        |                                                      3262 |
| DADRA NAGAR HAVELI |                                                       139 |
| DAMAN              |                                                        95 |
| DELHI              |                                                      8744 |
| DIU                |                                                        13 |
| GOA                |                                                      1032 |
| GUJARAT            |                                                     11726 |
| HARYANA            |                                                      6497 |
| HIMACHAL PRADESH   |                                                      1786 |
| JAMMU AND KASHMIR  |                                                      2516 |
| JHARKHAND          |                                                      3768 |
| KARNATAKA          |                                                     17664 |
| KERALA             |                                                      9644 |
| LAKSHWADEEP        |                                                        17 |
| MADHYA PRADESH     |                                                     10066 |
| MAHARASHTRA        |                                                     25651 |
| MANIPUR            |                                                       335 |
| MEGHALAYA          |                                                       409 |
| MIZORAM            |                                                       171 |
| NAGALAND           |                                                       316 |
| ORISSA             |                                                      6988 |
| PONDICHERRY        |                                                       591 |
| PUNJAB             |                                                      7384 |
| RAJASTHAN          |                                                      9386 |
| SIKKIM             |                                                       196 |
| TAMIL NADU         |                                                     25277 |
| TELANGANA          |                                                     10365 |
| TRIPURA            |                                                       491 |
| UTTAR PRADESH      |                                                     19937 |
| UTTARAKHAND        |                                                      2677 |
| WEST BENGAL        |                                                     11722 |
| TOTAL              |                                                    222066 |

Source: RBI