Lok Sabha Question No. 3289 (UNSTARRED), answered on 2021-08-09
Subject: Opening of Brick and Mortar Branches
Ministry: FINANCE
Asked by: Mahesh Sahoo

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

## LOK SABHA UNSTARRED QUESTION NO. 3289

ANSWERED ON MONDAY, AUGUST 09, 2021 / SRAVANA 18, 1943 (SAKA)

Opening of Brick and Mortar Branches

3289. Shri. Mahesh Sahoo: Will the Minister of FINANCE be pleased to state:

- (a) whether the Government will apprise the house regarding steps taken by it for opening of Brick and Mortar branches by the Scheduled Commercial Banks in all 4649 unbanked Gram Panchayats in Odisha and if so, the details thereof;
- (b) if not, whether any specific steps have been taken by the Government for covering 978 Gram Panchayats which do not have any banking outlets as on 31st March, 2021; and
- (c)  the  number  and  details  of  Gram  Panchayats  in  Angul  and  Dhenkanal  districts  without  any banking  outlets  and  the  number  and  details  of  those  Gram  Panchayats  which  would  have  the banking facilities soon along with the time by when such banking facilities could get functional?

## Answer

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR BHAGWAT KARAD)

(a) to (c) As per extant guidelines dated 18.05.2017 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  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).

In pursuance of RBI guidelines, rolling out of banking outlets in uncovered areas is a continuous process  looked after  by  the  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.

To  ensure  availability  of  banking  outlet  (Bank  branch  /  Business  Correspondent),  within  5 kilometers  of  all  inhabited  villages,  the  Government  has  launched  a  Geographic  Information System  (GIS)  based  app.,  namely,  Jan  Dhan  Darshak  App  (JDD  App)  developed  by  National Informatics Centre (NIC). Banks upload the GIS location of their branches, Business Correspondents (BCs) and Automated Teller Machines (ATMs) on the app.

As per JDD App data, no Gram Panchayat (GP) of Odisha is uncovered since all have banking outlets  (Bank  Branch/BC/IPPB  Centre)  within  the  radius  of  5  kms.  However,  as  informed  by SLBC, Odisha, and as per the JDD app data uploaded by the banks, as on 05.08.2021, there are only 13 villages in 11 GPs in Odisha State which are not having a banking touchpoint/outlet.

Further, all villages in Dhenkanal and Angul districts are covered by banking touchpoint/outlet within a 5 km  distance.  Thus,  all GPs  in  these two  districts  are  covered  by  banking touchpoints/outlets.

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