Lok Sabha Question No. 1631 (UNSTARRED), answered on 2020-03-02
Subject: Banking Facilities in Rural Areas
Ministry: FINANCE
Asked by: Sanjay Haribhau Jadhav, Arvind Ganpat Sawant, Ajay Nishad, Nishikant  Dubey, Sumedhanand Saraswati, Rajiv Pratap Rudy, Harish Dwivedi

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

## LOKSABHA

## UNSTARRED QUESTION No. 1631

ANSWERED ON MONDAY, MARCH 02, 2020/ PHALGUNA 12, 1941 (SAKA)

## Banking Facilities in Rural Areas

1631. SHRI SANJAY JADHAV: SHRI ARVIND GANPAT SAWANT: SHRI AJAY NISHAD: DR. NISHIKANT DUBEY: SHRI SUMEDHANAND SARASWATI: SHRI RAJIV PRATAP RUDY: SHRI HARISH DWIVEDI:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the total number of public and private sector bank branches in the country at present, State/UT-wise;
- (b) whether there are many villages/gram panchayats with a population of more than 3000 not having any banking facilities and if so, the details thereof;
- (c) whether the Government proposes to provide banking facilities in the said rural areas, if so, the details thereof and if not, the reasons therefor, State/UT-wise;
- (d) whether the Government proposes to open new branches of the public and private sector banks across the country including in backward rural areas, if so, the details thereof including the number of bank branches opened during each of the last three years and the current year, State/UT-wise; and
- (e) the other steps taken/proposed to be taken by the Government to provide banking facilities in rural areas across the country?

## Answer

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

- (a) As informed by Reserve Bank of India (RBI), the State/UT-wise number of branches of Scheduled Commercial Banks in the country as on 30.09.2019 is at Annexure 1.
- (b) to (e) Under Pradhan Mantri Jan-Dhan Yojana (PMJDY), all villages were mapped by banks into 1.59 lakh Sub-Service Areas (SSAs) with one SSA catering to 1,000 to 1,500 households. As informed by banks, while 0.33 lakh SSAs have been covered with bank branches, 1.26 lakh SSAs are covered by deployment of interoperable Business Correspondents (BCs).

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 (a fixed point service delivery unit, manned by either bank's staff or its Business Correspondent

(BC)) 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).

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.

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 informed by RBI, State/UT-wise number of branches opened by Commercial Banks as on 30.09.2019 along with last three years is at Annexure 2.

*****

| Annexure as referred in reply to part (a) of the Lok Sabha unstarred Q. No. 1631 for answer on 02.03.2020   | Annexure as referred in reply to part (a) of the Lok Sabha unstarred Q. No. 1631 for answer on 02.03.2020   |
|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Region/State/ UTs                                                                                           | TOTAL                                                                                                       |
| CENTRAL REGION                                                                                              | 29,290                                                                                                      |
| CHHATTISGARH                                                                                                | 2,722                                                                                                       |
| MADHYAPRADESH                                                                                               | 6,950                                                                                                       |
| UTTAR PRADESH                                                                                               | 17,483                                                                                                      |
| UTTARAKHAND                                                                                                 | 2,135                                                                                                       |
| EASTERN REGION                                                                                              | 24,601                                                                                                      |
| ANDAMAN &NICOBAR ISLAND                                                                                     | 72                                                                                                          |
| BIHAR                                                                                                       | 7,252                                                                                                       |
| JHARKHAND                                                                                                   | 3,089                                                                                                       |
| ODISHA                                                                                                      | 5,093                                                                                                       |
| SIKKIM                                                                                                      | 158                                                                                                         |
| WEST BENGAL                                                                                                 | 8,937                                                                                                       |
| NORTHEASTERN REGION                                                                                         | 4,496                                                                                                       |
| ARUNACHAL PRADESH                                                                                           | 169                                                                                                         |
| ASSAM                                                                                                       | 2,807                                                                                                       |
| MANIPUR                                                                                                     | 208                                                                                                         |
| MEGHALAYA                                                                                                   | 367                                                                                                         |
| MIZORAM                                                                                                     | 203                                                                                                         |
| NAGALAND                                                                                                    | 179                                                                                                         |
| TRIPURA                                                                                                     | 563                                                                                                         |
| NORTHERN REGION                                                                                             | 26,444                                                                                                      |
| CHANDIGARH                                                                                                  | 392                                                                                                         |
| HARYANA                                                                                                     | 5,036                                                                                                       |
| HIMACHAL PRADESH                                                                                            | 1,625                                                                                                       |
| JAMMU &KASHMIR                                                                                              | 1,798                                                                                                       |
| NCT OF DELHI                                                                                                | 3,597                                                                                                       |
| PUNJAB                                                                                                      | 6,512                                                                                                       |
| RAJASTHAN                                                                                                   | 7,484                                                                                                       |
| SOUTHERN REGION                                                                                             | 40,861                                                                                                      |
| ANDHRA PRADESH                                                                                              | 7,051                                                                                                       |
| KARNATAKA                                                                                                   | 10,438                                                                                                      |
| KERALA                                                                                                      | 6,532                                                                                                       |
| LAKSHADWEEP                                                                                                 | 14                                                                                                          |
| PUDUCHERRY                                                                                                  | 261                                                                                                         |
| TAMILNADU                                                                                                   | 11,361                                                                                                      |
| TELANGANA                                                                                                   | 5,204                                                                                                       |
| WESTERN REGION                                                                                              | 22,004                                                                                                      |
| DADRA &NAGARHAVELI                                                                                          | 62                                                                                                          |
| DAMAN&DIU                                                                                                   | 48                                                                                                          |
| GOA                                                                                                         | 676                                                                                                         |
| GUJARAT                                                                                                     | 8,290                                                                                                       |
| All India                                                                                                   | 147,696                                                                                                     |

Source: Reserve Bank of India

Annexure as referred in reply to part (d) of the Lok Sabha unstarred Q. No. 1631 for answer on 02.03.2020

| Number of Branches Opened by Commercial Banks - State/UT-wise   | Number of Branches Opened by Commercial Banks - State/UT-wise   | Number of Branches Opened by Commercial Banks - State/UT-wise   | Number of Branches Opened by Commercial Banks - State/UT-wise   | Number of Branches Opened by Commercial Banks - State/UT-wise   |
|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|
| STATE/UT                                                        | 2016-17                                                         | 2017-18                                                         | 2018-19                                                         | 2019-20 (till September 30, 2019)                               |
| ANDAMAN &NICOBAR ISLANDS                                        | 1                                                               | 2                                                               | 1                                                               | 3                                                               |
| ANDHRA PRADESH                                                  | 301                                                             | 194                                                             | 172                                                             | 67                                                              |
| ARUNACHAL PRADESH                                               | 5                                                               | 3                                                               | 14                                                              | 1                                                               |
| ASSAM                                                           | 115                                                             | 72                                                              | 105                                                             | 32                                                              |
| BIHAR                                                           | 214                                                             | 207                                                             | 217                                                             | 40                                                              |
| CHANDIGARH                                                      | 18                                                              | 10                                                              | 7                                                               | 9                                                               |
| CHHATTISGARH                                                    | 98                                                              | 71                                                              | 141                                                             | 46                                                              |
| DADRA &NAGARHAVELI                                              | 5                                                               | 1                                                               | 1                                                               | 1                                                               |
| DAMAN &DIU                                                      | 0                                                               | 0                                                               | 0                                                               | 2                                                               |
| GOA                                                             | 20                                                              | 6                                                               | 9                                                               | 4                                                               |
| GUJARAT                                                         | 300                                                             | 271                                                             | 269                                                             | 267                                                             |
| HARYANA                                                         | 216                                                             | 146                                                             | 177                                                             | 78                                                              |
| HIMACHAL PRADESH                                                | 54                                                              | 26                                                              | 24                                                              | 5                                                               |
| JAMMU &KASHMIR                                                  | 16                                                              | 36                                                              | 55                                                              | 7                                                               |
| JHARKHAND                                                       | 98                                                              | 70                                                              | 89                                                              | 33                                                              |
| KARNATAKA                                                       | 443                                                             | 260                                                             | 399                                                             | 156                                                             |
| KERALA                                                          | 176                                                             | 146                                                             | 137                                                             | 84                                                              |
| LAKSHADWEEP                                                     | 0                                                               | 0                                                               | 1                                                               | 0                                                               |
| MADHYAPRADESH                                                   | 271                                                             | 197                                                             | 299                                                             | 90                                                              |
| MAHARASHTRA                                                     | 405                                                             | 367                                                             | 526                                                             | 214                                                             |
| MANIPUR                                                         | 16                                                              | 13                                                              | 23                                                              | 2                                                               |
| MEGHALAYA                                                       | 7                                                               | 4                                                               | 15                                                              | 5                                                               |
| MIZORAM                                                         | 18                                                              | 2                                                               | 9                                                               | 2                                                               |
| NAGALAND                                                        | 15                                                              | 0                                                               | 12                                                              | 1                                                               |
| NCT OF DELHI                                                    | 132                                                             | 85                                                              | 97                                                              | 49                                                              |
| ODISHA                                                          | 167                                                             | 128                                                             | 156                                                             | 96                                                              |
| PUDUCHERRY                                                      | 11                                                              | 13                                                              | 12                                                              | 3                                                               |
| PUNJAB                                                          | 247                                                             | 163                                                             | 122                                                             | 50                                                              |
| RAJASTHAN                                                       | 269                                                             | 347                                                             | 227                                                             | 94                                                              |
| SIKKIM                                                          | 3                                                               | 9                                                               | 8                                                               | 5                                                               |
| TAMIL NADU                                                      | 498                                                             | 383                                                             | 544                                                             | 192                                                             |
| TELANGANA                                                       | 193                                                             | 142                                                             | 144                                                             | 87                                                              |
| TRIPURA                                                         | 10                                                              | 14                                                              | 17                                                              | 7                                                               |
| UTTAR PRADESH                                                   | 561                                                             | 335                                                             | 384                                                             | 138                                                             |
| UTTARAKHAND                                                     | 53                                                              | 56                                                              | 67                                                              | 18                                                              |
| WEST BENGAL                                                     | 259                                                             | 209                                                             | 206                                                             | 70                                                              |
| Total                                                           | 5215                                                            | 3988                                                            | 4686                                                            | 1958                                                            |

Source: Reserve Bank of India