Lok Sabha Question No. 119 (STARRED), answered on 2019-11-25
Subject: Opening of Bank Branches
Ministry: FINANCE
Asked by: Sujay Radhakrishna Vikhepatil, Shrikant Eknath Shinde

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION No.*119

ANSWERED ON 25 th NOVEMBER, 2019 (MONDAY) /AGRAHAYANA 4, 1941(SAKA)

## 'Opening of Bank Branches'

*119. DR. SUJAY RADHAKRISHNA VIKHE PATIL:

## DR. SHRIKANT EKNATH SHINDE:

Will the Minister of FINANCE be pleased to state:

- (a) the details of branches of the Public and Private Sector Banks opened during the last three years in the country, particularly in Maharashtra, District-wise;
- (b) whether the Government has laid down any criteria for opening of branches of PSBs and if so, the details thereof;
- (c) the number of Gram Panchayats and villages in the States of Maharashtra and Kerala which do not have any banking facilities; and
- (d) the steps taken/being taken by the Government to open bank branches in areas which are not having banking facilities?

## Answer

## THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN)

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

*****

## 19 th Position

Statement as referred to in reply to parts (a) to (d) of Lok Sabha Starred Question No. *119 (19 th Position) for 25 th November, 2019 by DR. SUJAY RADHAKRISHNA VIKHE PATIL, M.P. and DR. SHRIKANT EKNATH SHINDE M.P., regarding 'Opening of Bank Branches':

(a) to (d): Total number of branches of Public Sector Banks (PSBs) as on 30.6.2019 is 87,526 out of which 28,815 (33%) are in rural areas. During 2016-17: 2168 branches, 2017-18: 834 branches, 2018-19: 438 branches and 2019-20 (till June 30): 86 branches have been opened by PSBs.

Total number of branches of Private Sector Banks (PSBs) as on 30.6.2019 is 32,083 out of which 6846 (21%) are in rural areas. During 2016-17: 2216 branches, 2017-18: 1618 branches, 2018-19:1684 branches and 2019-20 (till June 30): 209 branches have been opened by Private Sector Banks.

In addition to the bank-branches, as on 30.6.2019, while Public Sector Banks have 1.34 lakh ATMs out of which 27,098 (20%) are in rural areas, Private Sector Banks have 69,019 ATMs, out of which 5759 (8%) are in rural areas.

In addition to the branches and ATMs, as per extant guidelines issued by RBI, banking outlets manned by the banks' Business Correspondents (BCs) also provide banking services. The major activities performed by BCs are opening of bank accounts, cash deposit and withdrawal, remittance, etc. As per information received from RBI, in March 2018, there are 5.15 lakh BCs providing banking services in villages out of which 3.58 lakh (69%) have been deployed by Public Sector Banks.

Based on the information provided by RBI, district-wise number of branches of the Public Sector Banks and Private Sector Banks opened during the last three years in Maharashtra is Annexed to this reply.

As per extant guidelines dated 18.5.2017 on rationalisation 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 prior approval of RBI 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 i.e. centres having population less than 10,000 (Tier 5 and Tier 6 centres).

In pursuance of RBI guidelines, rolling out of banking outlets in uncovered areas is a continuous process and looked after by State Level Bankers' Committee (SLBC), in consultation with the concerned State Government, member banks and other stakeholders. Banks, inter-alia, consider proposals for opening banking outlets in the light of RBI's instructions, their business plans and their commercial viability. To further assess the viability for opening a banking outlet, banks carry out survey as required.

As apprised by respective SLBCs of Maharashtra and Kerala, all Gram Panchayats are covered by banking outlets.

*****

Annexure Annexure as referred to in reply to Lok Sabha Starred Question No. 119 for 25.11.2019 on 'Opening

## of Bank Branches'

| Number of Branches Opened DISTRICT   | PUBLIC SECTOR   | PUBLIC SECTOR   | PUBLIC SECTOR   | PUBLIC SECTOR            | Sector Banks in Maharashtra, District-wise   | Sector Banks in Maharashtra, District-wise   | Sector Banks in Maharashtra, District-wise   | Sector Banks in Maharashtra, District-wise   |
|--------------------------------------|-----------------|-----------------|-----------------|--------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
| Number of Branches Opened DISTRICT   | 2016-17         | 2017-18         | 2018-19         | 2019-20 (till June 30th) | 2016-17                                      | 2017-18                                      | 2018-19                                      | BANKS 2019-20 (till June 30th)               |
| AHMADNAGAR                           | 3               | 2               | 1               | 0                        | 3                                            | 8                                            | 5                                            | 1                                            |
| AKOLA                                | 2               | 0               | 0               |                          | 1                                            | 0                                            | 1                                            |                                              |
| AMRAVATI                             | 3               | 0               | 0               | 0                        | 3                                            | 3                                            | 3                                            |                                              |
| AURANGABAD                           | 3               | 0               | 2               | 1                        | 1                                            | 8                                            | 8                                            |                                              |
| BHANDARA                             | 0               | 0               | 0               |                          | 2                                            | 1                                            | 0                                            |                                              |
| BID                                  | 2               | 0               | 0               |                          | 0                                            | 1                                            | 1                                            |                                              |
| BULDHANA                             | 2               | 0               | 0               |                          | 3                                            | 2                                            | 1                                            |                                              |
| CHANDRAPUR                           | 3               | 0               | 0               | 0                        | 2                                            | 3                                            | 3                                            | 3                                            |
| DHULE                                | 2               | 0               | 0               |                          | 5                                            | 3                                            | 3                                            |                                              |
| GADCHIROLI                           | 1               | 0               | 0               |                          | 0                                            | 0                                            | 1                                            |                                              |
| GONDIA                               | 2               | 0               | 0               |                          | 0                                            | 0                                            | 1                                            |                                              |
| HINGOLI                              | 2               | 1               | 0               |                          | 2                                            | 0                                            | 1                                            |                                              |
| JALGAON                              | 6               | 0               | 0               |                          | 10                                           | 11                                           | 5                                            |                                              |
| JALNA                                | 1               | 0               | 0               |                          | 1                                            | 2                                            | 0                                            |                                              |
| KOLHAPUR                             | 3               | 0               | 1               | 0                        | 6                                            | 5                                            | 9                                            | 2                                            |
| LATUR                                | 1               | 0               | 0               |                          | 0                                            | 1                                            | 0                                            |                                              |
| MUMBAI                               | 12              | 1               | 4               | 3                        | 7                                            | 3                                            | 23                                           | 2                                            |
| MUMBAI SUBURBAN                      | 14              | 2               | 3               | 0                        | 22                                           | 17                                           | 19                                           | 7                                            |
| NAGPUR                               | 9               | 3               | 1               |                          | 17                                           | 7                                            | 16                                           |                                              |
| NANDED                               | 3               | 0               | 1               |                          | 0                                            | 0                                            | 0                                            |                                              |
| NANDURBAR                            | 1               | 0               | 0               |                          | 0                                            | 0                                            | 0                                            |                                              |
| NASIK                                | 10              | 0               | 2               |                          | 9                                            | 16                                           | 13                                           |                                              |
| OSMANABAD                            | 1               | 0               | 1               |                          | 2                                            | 0                                            | 2                                            |                                              |
| PALGHAR                              | 4               | 6               | 0               | 0                        | 4                                            | 3                                            | 4                                            | 1                                            |
| PARBHANI                             | 1               | 0               | 0               |                          | 1                                            | 0                                            | 0                                            |                                              |
| PUNE                                 | 31              | 11              | 5               | 2                        | 51                                           | 16                                           | 45                                           | 4                                            |
| RAIGAD                               | 7               | 3               | 0               | 0                        | 4                                            | 7                                            | 4                                            | 3                                            |
| RATNAGIRI                            | 2               | 2               | 0               |                          | 0                                            | 5                                            | 3                                            |                                              |
| SANGLI                               | 2               | 2               | 0               |                          | 6                                            | 3                                            | 2                                            |                                              |
| SATARA                               | 5               | 0               | 0               | 0                        | 3                                            | 1                                            | 3                                            | 1                                            |
| SINDHUDURG                           | 1               | 0               | 2               |                          | 1                                            | 4                                            | 3                                            |                                              |
| SOLAPUR                              | 8               | 1               | 1               | 0                        | 3                                            | 4                                            | 4                                            | 1                                            |
| THANE                                | 12              | 6               | 1               | 0                        | 28                                           | 16                                           | 19                                           | 2                                            |
| WARDHA                               | 3               | 0               | 0               |                          | 1                                            | 1                                            | 2                                            |                                              |
| WASHIM                               | 1               | 0               | 0               |                          | 1                                            | 0                                            | 0                                            |                                              |
| YAVATMAL                             | 2               | 1               | 0               |                          | 1                                            | 0                                            | 0                                            |                                              |
| TOTAL- MAHARASHTRA                   | 165             | 41              | 25              | 6                        | 200                                          | 151                                          | 204                                          | 27                                           |

Source: Reserve Bank of India