Lok Sabha Question No. 2742 (UNSTARRED), answered on 2017-03-17
Subject: Banking Services in Rural Areas
Ministry: FINANCE
Asked by: E. T. MOHAMMED BASHEER, LAKHAN LAL SAHU, ABHISHEK SINGH, FAIZAL P.P. MOHAMMED, NAGENDRA KUMAR PRADHAN, HARI MANJHI, RAVINDRA KUMAR RAY, RAJESHBHAI NARANBHAI CHUDASAMA, SUSHIL KUMAR SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION No\_ 2742

TO BE ANSWERED ON 17th MARCH, 2017 (FRIDAYYPHALGUNA 26, 1938 (SAKA)

## Banking Services in Rural Areas

2742. SHRI E.T. MOHAMMED BASHEER:

SHRI LAKHAN LAL SAHU:

SHRI ABHISHEK SINGH:

MOHAMMED FAIZAL:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI HARI MANJHI:

DR: RAVINDRA KUMAR RAY:

SHRI RAJESHBHAI CHUDASAMA:

SHRI SUSHIL KUMAR SINGH:

- (a) whether the Government has taken note of lack of  banking facilities in unserved rurallbackward/hillylremote areas;
- (c) the total number of branches opened by public and private sector banks along with the
- (b) if so, the details thereof along with the normslguidelines laid down by the Reserve Bank of India for opening of bank branches in said areas;
- number of the branches opened in unserved rural, backward, and remote areas during the last three years and the current year; bank and State/UT-wise; hilly
- thereof; and
- (d) whether the Government provide banking facilities through post offices and if so, the details
- (e) the steps taken/being taken by the Government for opening of bricks and mortar banks in each of unbanked gram panchayats so as to ensure banking facilities to each household of the country?

## Answer

## Minister of State in the Ministry of Finance

## The (SHRI SANTOSH KUMAR GANGWAR)

- (a) to (e) To promote financial inclusion and to expand the banking network in unbanked areas general permission has been granted by Reserve Bank of India (RBI) to domestic Scheduled Commercial Banks (SCBs) 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  being opened 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 year cannot exceed the total number of branches opened in Tier 2 to Tier 6 centres (population upto 99999) and all centres in the North Eastern States and Sikkim. As on 30.09.2016, out of 134750 total bank branches of SCBs, 85043 bank branches are in rural and Semi-urban areas. State-wise number of bank branches opened by Public Sector Banks during the last three years and the current year is given in Annexure. India Post Payment Bank (IPPB) has been  granted a banking license from the RBI on the 20th Jan 2017 and has launched banking facilities in Ranchi and Raipur: prior

## Number of branches opened by public sector banks in unbanked rural centers during 2013-14,2014-15, 2015-16 and 2016-17 (1.4.2016 to 30.9.2016)

| STATE/UT             | 2013-14   | 2014-15   | 2015-16   | 2016-17   |
|----------------------|-----------|-----------|-----------|-----------|
| ANDAMAN & NICOBAR IS | 1         |           | 1         |           |
| ANDHRA PRADESH       | 81        | 70        | 45        | 10        |
| ARUNACHAL PRADESH    | 1         | 2         |           |           |
| ASSAM                | 43        | 11        | 8         |           |
| BIHAR                | 113       | 54        | 22        | 3         |
| CHANDIGARH           |           | 1         |           |           |
| CHHATTISGARH         | 24        | 17        |           | 8         |
| DADRA & NAGAR HAVELI | 1         | 1         | 1         | 1         |
| GOA                  | 7         | 4         |           | 1         |
| GUJARAT              | 91        | 68        | 37        | 10        |
| HARYANA              | 54        | 51        | 14        | 3         |
| HIMACHAL PRADESH     | 34        | 30        | 18        | 5         |
| JAMMU & KASHMIR      | 3         | 1         |           |           |
| JHARKHAND            | 40        | 33        | 18        | 15        |
| KARNATAKA            | 188       | 114       | 59        | 14        |
| KERALA               | 3         | 3         | 6         |           |
| MADHYA PRADESH       | 58        | 35        | 11        | 7         |
| MAHARASHTRA          | 145       | 65        | 55        | 13        |
| MANIPUR              | 3         |           |           |           |
| MEGHALAYA            | 2         |           | 2         |           |
| MIZORAM              | 1         |           | 2         |           |
| NAGALAND             |           |           | 1         |           |
| NCT OF DELHI         | 9         | 2         |           |           |
| ODISHA               | 87        | 77        | 46        | 16        |
| PUDUCHERRY           |           | 3         |           |           |
| PUNJAB               | 111       | 88        | 34        | 5         |
| RAJASTHAN            | 92        | 90        | 67        | 5         |
| SIKKIM               | 1         |           |           |           |
| TAMIL NADU           | 109       | 75        | 35        | 7         |
| TELANGANA            | 39        | 39        | 23        | 4         |
| TRIPURA              | 3         |           | 1         |           |
| UTTAR PRADESH        | 521       | 188       | 96        | 9         |
| UTTARAKHAND          | 23        | 28        | 7         | 3         |
| WEST BENGAL          | 106       | 91        | 20        |           |
| ALL INDIA            | 1,994     | 1,242     | 654       | 148       |

Source: RBI