Lok Sabha Question No. 65 (UNSTARRED), answered on 2020-02-03
Subject: Bank Operations
Ministry: FINANCE
Asked by: Poonamben Hematbhai Maadam

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

## LOK SABHA UNSTARRED QUESTION No. 65

Answered on Monday, February 3, 2020/Magha 14, 1941 (Saka)

## Bank Operations

## 65. SHRIMATI POONAMBEN MAADAM:

Will the Minister of FINANCE be pleased t0 state:

- (a) whether there is unnecessary delay in disposing off work of account holders due to excessive crowds in rural bank branches in Gujarat and the customer service has become So poor in rural bank branches;
- (b) if so, the details thereof and the reaction of the Government in this regard;
- (c) whether the Government proposes t0 increase the number of banks in view of increasing accounts and crowds in rural banks; and
- (d) if so, the details thereof and if not; the reasons therefor?

## Answer

THE MINISTER OF STATE [N THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (d) As per extant guidelines dated 18.5.2017 on rationalisation of Branch 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 approval of RBI in each case, subject to at least 25 percent of' the total number of banking outlets   opened   during a financial year in unbanked rural centres i.e. centres population less than 10,000 (Tier 5 and Tier 6 centres). prior having being

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

Under Pradhan Mantri Jan-Dhan Yojana (PMJDY), all villages were mapped by banks into 1.59 lakh SubService Areas (SSAs) with one SSA catering to 1,000 to 1,500 households. While 0.33 lakh SSAs have Business Correspondents (BCs). Of these, 7723 SSAs are in the state of Gujarat out of which 1859 are covered through bank branches and 5864 are covered through BCs:

In pursuance of RBL guidelines, rolling out of banking outlets in uncovered areas is a continuous process and looked after by SLBC, in consultation with the concerned State Government; member banks and other for  opening banking outlets in 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 RBI, the total number of functioning branches of Commercial Banks (SCBs) in Gujarat are as under:

| Number of Functioning Branches of Commercial Banks in Gujarat   | Number of Functioning Branches of Commercial Banks in Gujarat   | Number of Functioning Branches of Commercial Banks in Gujarat   |
|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|
|                                                                 |                                                                 | Of which in Rural                                               |
| March 31,2017                                                   | 7489                                                            | 2296                                                            |
| March 31,2018                                                   | 7705                                                            | 2346                                                            |
| March 31,2019                                                   | 7918                                                            | 2391                                                            |
| Sept: 30,2019                                                   | 8300                                                            | 2565                                                            |

State Level Banker' s Committee (SLBC) Gujarat has apprised that no such incidence of delay in disposing off work of account holders due to excessive crowds in rural bank branches in Gujarat and poor customer service has been reported with the SLBC so far.