Lok Sabha Question No. 1801 (UNSTARRED), answered on 2018-07-27
Subject: Banking Penetration
Ministry: FINANCE
Asked by: FAIZAL P.P. MOHAMMED, KAUSHAL KISHORE, ABHISHEK SINGH, HARISH CHANDRA MEENA

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

## LOK SABHA UNSTARRED QUESTION No. 1801

TO BE ANSWERED ON 27 th  JULY, 2018 (FRIDAY)/SHRAVANA 5, 1940 (SAKA)

Banking Penetration

## 1801. MOHAMMED FAIZAL: SHRI KAUSHAL KISHORE: SHRI ABHISHEK SINGH: SHRI HARISH MEENA:

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  the  per  person  availability  of  banks  in  the  rural  areas  of  the  country, State/UT-wise;
- (b) the details of the norms/criteria prescribed for opening of bank branches in the rural areas along  with  the  number  of  Bank  branches  opened  by  the  Public  Sector  Banks  (PSBs) especially in the minority concentrated, hilly and remote areas of the country, State/UTwise including Rajasthan and Lakshadweep;
- (c) whether the Government proposes to make relaxation in the present law for nationalized bank to open new branches in rural areas, if so, the details thereof and if not, the reasons therefor;
- (d) whether  the  Government  is  considering/already  implementing  the  concept  of  Mobile Banks in the interior regions of the country for better financial inclusion and if so, the details thereof;
- (e) whether the PSBs have fixed any target for sanctioning of loans particularly in tribal and hilly areas and if so, the details of the norms/guidelines issued by the Government in this regard; and
- (f) the  steps  taken  by  the  Government  to  increase  the  banking  penetration  especially  in above regions, State/UT-wise?

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

- (a) As  informed  by  Reserve  Bank  of  India  (RBI),  the  details  of  per  person  availability  of banks in rural areas of the country is not available with them. However, State/UT wise number  of  bank  branches  of  Scheduled  Commercial  Banks  as  on  31.3.2018,  is  at Annexure-1.
- (b) (c)  and  (f) As  per  extant  guidelines  dated  18.5.2017  on  rationalizing  of  Branch Authorisation  Policy,  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 with population less than 10,000. For this purpose, banking outlets opened in any centre having population less than 50,000 in North Eastern states, Sikkim and also Left Wing 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.

The number of branches of Public Sector Banks as on 31.3.2018 is at Annexure-2 .

- (d) RBI vide its circular dated 18.5.2017 has, inter-alia, allowed banks to open/operate mobile branches in all Centres.   However, these mobile branches are not considered as Banking Outlets.
- (e) Reserve Bank of India has issued master circular to all Scheduled Commercial Banks with targets under priority sector lending which includes agriculture, micro small and medium enterprises, export credit, education, housing, social infrastructure, renewable energy etc.

***

| Annexure-1 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration                      | Annexure-1 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration                      | Annexure-1 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration                      | Annexure-1 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration                      | Annexure-1 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration                      | Annexure-1 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration                      |
|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| Number of Functioning Branches of Scheduled Commercial Banks as on 31.03.2018 - State/UTs and Population Group wise | Number of Functioning Branches of Scheduled Commercial Banks as on 31.03.2018 - State/UTs and Population Group wise | Number of Functioning Branches of Scheduled Commercial Banks as on 31.03.2018 - State/UTs and Population Group wise | Number of Functioning Branches of Scheduled Commercial Banks as on 31.03.2018 - State/UTs and Population Group wise | Number of Functioning Branches of Scheduled Commercial Banks as on 31.03.2018 - State/UTs and Population Group wise | Number of Functioning Branches of Scheduled Commercial Banks as on 31.03.2018 - State/UTs and Population Group wise |
| Region/State/ UTs                                                                                                   | RURAL                                                                                                               | SEMI- URBAN                                                                                                         | URBAN                                                                                                               | METROPOLITAN                                                                                                        | TOTAL                                                                                                               |
| CENTRAL REGION                                                                                                      |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |
| CHHATTISGARH                                                                                                        | 1,063                                                                                                               | 692                                                                                                                 | 490                                                                                                                 | 293                                                                                                                 | 2,538                                                                                                               |
| MADHYA PRADESH                                                                                                      | 2,306                                                                                                               | 1,932                                                                                                               | 1,074                                                                                                               | 1,309                                                                                                               | 6,621                                                                                                               |
| UTTAR PRADESH                                                                                                       | 7,716                                                                                                               | 3,840                                                                                                               | 2,820                                                                                                               | 2,670                                                                                                               | 17,046                                                                                                              |
| UTTARAKHAND                                                                                                         | 938                                                                                                                 | 527                                                                                                                 | 597                                                                                                                 | 0                                                                                                                   | 2,062                                                                                                               |
| Total                                                                                                               | 12,023                                                                                                              | 6,991                                                                                                               | 4,981                                                                                                               | 4,272                                                                                                               | 28,267                                                                                                              |
| EASTERN REGION                                                                                                      |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |
| ANDAMAN & NICOBAR IS                                                                                                | 23                                                                                                                  | 12                                                                                                                  | 33                                                                                                                  | 0                                                                                                                   | 68                                                                                                                  |
| BIHAR                                                                                                               | 3,266                                                                                                               | 2,203                                                                                                               | 1,061                                                                                                               | 496                                                                                                                 | 7,026                                                                                                               |
| JHARKHAND                                                                                                           | 1,348                                                                                                               | 778                                                                                                                 | 441                                                                                                                 | 445                                                                                                                 | 3,012                                                                                                               |
| ODISHA                                                                                                              | 2,568                                                                                                               | 1,273                                                                                                               | 1,026                                                                                                               | 0                                                                                                                   | 4,867                                                                                                               |
| SIKKIM                                                                                                              | 72                                                                                                                  | 20                                                                                                                  | 53                                                                                                                  | 0                                                                                                                   | 145                                                                                                                 |
| WEST BENGAL                                                                                                         | 3,662                                                                                                               | 1,658                                                                                                               | 1,805                                                                                                               | 1,643                                                                                                               | 8,768                                                                                                               |
| Total                                                                                                               | 10,939                                                                                                              | 5,944                                                                                                               | 4,419                                                                                                               | 2,584                                                                                                               | 23,886                                                                                                              |
| NORTH EASTERN REGION                                                                                                |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |                                                                                                                     |
| ARUNACHAL PRADESH                                                                                                   | 73                                                                                                                  | 81                                                                                                                  | 0                                                                                                                   | 0                                                                                                                   | 154                                                                                                                 |
| ASSAM                                                                                                               | 1,309                                                                                                               | 739                                                                                                                 | 608                                                                                                                 | 0                                                                                                                   | 2,656                                                                                                               |
| MANIPUR                                                                                                             | 80                                                                                                                  | 43                                                                                                                  | 60                                                                                                                  | 0                                                                                                                   | 183                                                                                                                 |
| MEGHALAYA                                                                                                           | 170                                                                                                                 | 77                                                                                                                  | 101                                                                                                                 | 0                                                                                                                   | 348                                                                                                                 |

| MIZORAM              | 67     | 53     | 75     | 0      | 195      |
|----------------------|--------|--------|--------|--------|----------|
| NAGALAND             | 53     | 72     | 41     | 0      | 166      |
| TRIPURA              | 235    | 188    | 114    | 0      | 537      |
| Total                | 1,987  | 1,253  | 999    | 0      | 4,239    |
| NORTHERN REGION      |        |        |        |        |          |
| CHANDIGARH           | 11     | 6      | 383    | 0      | 400      |
| HARYANA              | 1,616  | 1,206  | 1,745  | 259    | 4,826    |
| HIMACHAL PRADESH     | 1,209  | 311    | 83     | 0      | 1,603    |
| JAMMU & KASHMIR      | 890    | 411    | 279    | 182    | 1,762    |
| NCT OF DELHI         | 68     | 89     | 12     | 3,371  | 3,540    |
| PUNJAB               | 2,534  | 2,015  | 1,169  | 726    | 6,444    |
| RAJASTHAN            | 2,853  | 2,044  | 1,260  | 1,007  | 7,164    |
| Total                | 9,181  | 6,082  | 4,931  | 5,545  | 25,739   |
| SOUTHERN REGION      |        |        |        |        |          |
| ANDHRA PRADESH       | 2,383  | 2,065  | 1,640  | 765    | 6,853    |
| KARNATAKA            | 3,485  | 2,347  | 2,039  | 2,228  | 10,099   |
| KERALA               | 331    | 4,500  | 1,424  | 0      | 6,255    |
| LAKSHADWEEP          | 6      | 7      | 0      | 0      | 13       |
| PUDUCHERRY           | 51     | 72     | 119    | 0      | 242      |
| TAMIL NADU           | 2,926  | 3,901  | 1,498  | 2,477  | 10,802   |
| TELANGANA            | 1,536  | 1,157  | 608    | 1,876  | 5,177    |
| Total                | 10,718 | 14,049 | 7,328  | 7,346  | 39,441   |
| WESTERN REGION       |        |        |        |        |          |
| DADRA & NAGAR HAVELI | 14     | 47     | 0      | 0      | 61       |
| DAMAN & DIU          | 3      | 44     | 0      | 0      | 47       |
| GOA                  | 279    | 394    | 0      | 0      | 673      |
| GUJARAT              | 2,488  | 2,004  | 1,265  | 2,132  | 7,889    |
| MAHARASHTRA          | 3,116  | 2,888  | 1,429  | 4,976  | 12,409   |
| Total                | 5,900  | 5,377  | 2,694  | 7,108  | 21,079   |
| All India            | 50,748 | 39,696 | 25,352 | 26,855 | 1,42,651 |
| Source: RBI          |        |        |        |        |          |

| Annexure-2 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration               | Annexure-2 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration               | Annexure-2 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration               | Annexure-2 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration               | Annexure-2 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration               | Annexure-2 - Lok Sabha unstarred question no. 1801 for 27.7.2018 regarding Banking Penetration               |
|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Number of Functioning Branches of Public Sector Banks as on 31.03.2018 - Bank wise and Population Group wise | Number of Functioning Branches of Public Sector Banks as on 31.03.2018 - Bank wise and Population Group wise | Number of Functioning Branches of Public Sector Banks as on 31.03.2018 - Bank wise and Population Group wise | Number of Functioning Branches of Public Sector Banks as on 31.03.2018 - Bank wise and Population Group wise | Number of Functioning Branches of Public Sector Banks as on 31.03.2018 - Bank wise and Population Group wise | Number of Functioning Branches of Public Sector Banks as on 31.03.2018 - Bank wise and Population Group wise |
| BANK NAME                                                                                                    | RURAL                                                                                                        | SEMI-URBAN                                                                                                   | URBAN                                                                                                        | METROPOLITAN                                                                                                 | TOTAL                                                                                                        |
| STATE BANK OF INDIA                                                                                          | 7,757                                                                                                        | 6,719                                                                                                        | 4,180                                                                                                        | 4,299                                                                                                        | 22,955                                                                                                       |
| ALLAHABAD BANK                                                                                               | 1,207                                                                                                        | 764                                                                                                          | 648                                                                                                          | 626                                                                                                          | 3,245                                                                                                        |
| ANDHRA BANK                                                                                                  | 745                                                                                                          | 770                                                                                                          | 669                                                                                                          | 736                                                                                                          | 2,920                                                                                                        |
| BANK OF BARODA                                                                                               | 1,833                                                                                                        | 1,537                                                                                                        | 931                                                                                                          | 1,168                                                                                                        | 5,469                                                                                                        |
| BANK OF INDIA                                                                                                | 1,834                                                                                                        | 1,455                                                                                                        | 806                                                                                                          | 983                                                                                                          | 5,078                                                                                                        |
| BANK OF MAHARASHTRA                                                                                          | 615                                                                                                          | 428                                                                                                          | 329                                                                                                          | 474                                                                                                          | 1,846                                                                                                        |
| CANARA BANK                                                                                                  | 1,810                                                                                                        | 1,991                                                                                                        | 1,165                                                                                                        | 1,255                                                                                                        | 6,221                                                                                                        |
| CENTRAL BANK OF INDIA                                                                                        | 1,602                                                                                                        | 1,352                                                                                                        | 834                                                                                                          | 899                                                                                                          | 4,687                                                                                                        |
| CORPORATION BANK                                                                                             | 588                                                                                                          | 795                                                                                                          | 524                                                                                                          | 557                                                                                                          | 2,464                                                                                                        |

| DENA BANK                 | 573    | 433    | 368    | 418    | 1,792   |
|---------------------------|--------|--------|--------|--------|---------|
| INDIAN BANK               | 727    | 785    | 607    | 630    | 2,749   |
| INDIAN OVERSEAS BANK      | 922    | 990    | 678    | 744    | 3,334   |
| ORIENTAL BANK OF COMMERCE | 560    | 627    | 611    | 601    | 2,399   |
| PUNJAB AND SIND BANK      | 561    | 278    | 352    | 325    | 1,516   |
| PUNJAB NATIONAL BANK      | 2,572  | 1,698  | 1,200  | 1,101  | 6,571   |
| SYNDICATE BANK            | 1,241  | 1,128  | 816    | 848    | 4,033   |
| UCO BANK                  | 1,075  | 821    | 603    | 580    | 3,079   |
| UNION BANK OF INDIA       | 1,252  | 1,288  | 852    | 907    | 4,299   |
| UNITED BANK OF INDIA      | 779    | 408    | 471    | 360    | 2,018   |
| VIJAYA BANK               | 513    | 547    | 535    | 540    | 2,135   |
| IDBI BANK LIMITED         | 415    | 592    | 506    | 504    | 2,017   |
| All INDIA                 | 29,181 | 25,406 | 17,685 | 18,555 | 90,827  |

Source: RBI