Lok Sabha Question No. 3039 (UNSTARRED), answered on 2021-03-15
Subject: Banking Facilities at Gram Panchayats
Ministry: FINANCE
Asked by: Dharambir Singh

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 3039

ANSWERED ON MONDAY, MARCH 15,2021/ PHALGUNA 24, 1942 (SAKA)

## Banking Facilities at Gram Panchayats

3039. SHRI DHARAMBIR SINGH:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware of the number of Gram Panchayats, Panchayat Samitis and Khand Samitis which have no banking facilities in the areas having population of more than 3000;
- (b) if so, whether the Government proposes to provide banking facilities in the said areas;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) the details of  the number of Khands (Community Development  Blocks) in Haryana which do not have a single branch of public sectorlprivate sector bank at present; and
- (e) the steps taken by the Government to provide banking facilities at the Gram Panchayat and Block levels across the country including Haryana?

## Answer

## THE MI NISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) to (c) & (e) To ensure availability of banking outlet  (Bank branch/Business Correspondent (BC)) within 5 kilometers of all inhabited villages, the Government has launched a Geographic Information System (GIS) based Jan Dhan Darshak app (JDD app) developed by National Informatics Centre (NIC) Banks have been   provided   login credentials to  upload the GIS location of their branches, Business Correspondents and ATMs on the app. As per data uploaded by the banks on JDD app, out of the 5.54 lakh mapped villages on the app, 5.53 lakh villages (99.93%) are having bank branch or BC within 5 kilometers distance.

As per extant guidelines dated 18.5.2017 on rationalisation of Branch Authorisation Reserve Bank of India  (RBI) has granted general permission to domestic Scheduled Commercial Banks   (excluding Regional Rural Banks) , to open banking Policy, outlets 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   banking outlets opened   during a financial year being in unbanked rural centres i.e centres having population less 5 and Tier 6 centres). A 'Banking Outlet' for a Domestic Scheduled Commercial B ank, a Small Finance Bank and a Payment Bank is a fixed-point service delivery unit; manned by either bank's staff or its BC prior

Further, ten Small Finance Banks and six Payment Banks have been licensed by RBI for providing banking services across the country including the rural centres.

In pursuance of RBI guidelines, out of banking outlets in uncovered areas is a continuous process and looked after by State Level Banker's 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. rolling

(d) As informed by SLBC Haryana, all the Gram Panchayats and Blocks in the State are covered with banking services by bank branches BCs.