Lok Sabha Question No. 4323 (UNSTARRED), answered on 2021-03-22
Subject: Banking Facilities in Bihar
Ministry: FINANCE
Asked by: Dinesh Chandra Yadav, Rajiv Pratap Rudy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED  QUESTION NO. 4323.

ANSWERED  ON MONDAY, MARCH 22,202111 CHAITM  ,  1943 (SAKA)

## Banking Facilities in Bihar

4323. SHRI DINESH CHANDRA YADAV:

SHRI MJIV MNJAN SINGH ALIAS LALAN SINGH:

Will the Minister  of FINANCE  be pleased  to state:

- (a) whether the Government  of Bihar has submitted  any proposal  for opening  of at least one branch of any Nationalised  bank in each Panchayat  in the state of Bihar;
- (b) if so, the details thereof incruding  the status of this proposal;  and
- (c) whether  the Government  of Bihar State has also raised this matter in the last meeting
- with the NitiAayog  and if so, the details thereof?

## ANSWER

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

- (a) to (c) ln the Sixth Meeting of the Governing  Council  of NlTl Aayog held on February 20,2021,  the issue of establishment  of Brick and Mortar bank
- branches in all Panchayats was raised by the Government of Bihar.

As per extant guidelines  dated 18.5.2017 on rationalisation of Branch Authorisation Policy,  Reserve Bank of lndia (RBl) 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 tp 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  (TierS and Tier 6 centres). A'Banking Outlet'for  a Domestic Scheduled Commercial Bank, a Small Finance  Bank and a Payment Bank is a fixed-point  service  delivery unit, manned by either bank's stafl or its Business  Correspondent  (BC).

To ensure availabllity  of banking outlet (Bank branch/Business Correspondent), within 5 kilometres  of all inhabited villages the Government  has launched  a Geographic lnformation  System (GlS) based app., namely, Jan Dhan Darshak  app (JDD app) developed  by National lnformatics  Centre (NIC). Banks upload  the GIS location of their branches,  Business Correspondents  (BCs)  and Automated  Teller Machines (ATMs) on the app. As per data uploaded by the banks on JDD app, as on 26.02.2021  , out of the 5.53 lakh mapped villages on the app, s.s2lakh (99"94%) villages  are having bank branch or BC within 5 kilometers  distance.

ln the state  of Bihar, all the 39,223inhabited  villages of Bihar mapped  on JDD app, are having bank branch, BC  or IPPB centre within 5 kilometres distance.  Further, in Bihar,  banking services are being provided  through T,g4oBank  Branches, 31,44g Business correspondents  (BCs), 8,347 lndia Post  payment  Bank (lppB) centers and 6,362 ATMs.

ln pursuance  of RBI guidelines,  rolling out of banking ouflets 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 consider proposals  for opening banking  outtets 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.

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