Lok Sabha Question No. 2381 (UNSTARRED), answered on 2025-08-04
Subject: Norms/Guidelines for Opening of Nationalised Banks in Rural Areas
Ministry: FINANCE
Asked by: Shri Omprakash Bhupalsinh Alias Pavan Rajenimbalkar, Thiru D M Kathir Anand, Shri K E Prakash

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

## LOK SABHA UNSTARRED QUESTION NO. 2381

ANSWERED ON MONDAY, AUGUST 4, 2025/SRAVANA 13, 1947 (SAKA)

## NORMS/GUIDELINES FOR OPENING OF NATIONALISED BANKS IN RURAL AREAS

2381. Shri K E Prakash:

Thiru D M Kathir Anand:

Shri Omprakash Bhupalsinh Alias Pavan Rajenimbalkar:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has mapped the availability of public sector bank branches and ATMs in the rural belts of the country including Tamil Nadu and Maharashtra especially Anaicut, K.V. Kuppam, Vaniyambadi, Ambur and Gudiyatham blocks in Vellore of Tamil Nadu;
- (b) if  so,  whether  the  Government  has  any  prescribed  norms  or  guidelines  regarding  the  distance  or  population thresholds for the opening of bank branches and if so, the details thereof;
- (c) the number of new PSBs opened in the Dharapuram Assembly Constituency in Tamil Nadu during the last two years along with the names of the bank branches opened under these norms;
- (d) the number of proposals received by the Government from Maharashtra to open new bank branches in 60 villages of Dharashiv district along with the number of proposals approved;
- (e) whether the Government acknowledges a severe gap in banking infrastructure leading to exclusion from Jan Dhan, DBT and PMJJBY schemes and if so, the corrective steps taken by the Government in this regard; and
- (f) whether the Government has any plans to deploy India Post Payment Banks or Mobile Banking vans in these areas to bridge the digital divide and if so, the details thereof along with the timeline proposed and budgetary allocation made in this regard?

## Answer

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  to  (f)  The  endeavor  of  the  Government  is  to  ensure  availability  of  banking  outlet  (Bank  branch/Business Correspondent/ India Post Payments Bank) within 5 kilometres of all inhabited villages in the country.

Availability of banking outlets is monitored by a Geographic Information System (GIS) based App., namely, Jan Dhan Darshak (JDD) App. Based on the data uploaded by Banks on the JDD App, out of total 6,01,328 inhabited villages in the country, 6,00,803 (99.91%) villages are covered with banking outlets (Bank Branch / BC / IPPB) within a radius of 5 kms. Position of Bank branches and ATMs for the Maharashtra & Tamil Nadu as mapped on JDD App as on 30.06.2025 is as under:

| State       | Bank Branches   | ATMs   |
|-------------|-----------------|--------|
| Maharashtra | 7,593           | 11,604 |
| Tamil Nadu  | 6,397           | 13,374 |

SLBC, Maharashtra has apprised that no such proposal of opening of new bank branch in 60 villages of Dharashiv District has recently been received. However, in September 2023 a request for opening of bank branches in 41 locations of Dharashiv District was received from the District Collector, Dharashiv. Upon survey of the 41 locations, it was found that all the locations were already covered with one or more banking outlet.

Further, no new branch of Public Sector Bank (PSB) has been opened in the Dharapuram Assembly Constituency in last two years. Data for proposals of opening new bank branches is not centrally maintained.

Further, Department of Posts (DoP) has apprised that in Tamil Nadu and Maharashtra, India Post Payments Bank (IPPB) provides banking services through the DoP's network of 11,855 & 14,020 post offices as Banking access points, respectively. IPPB is facilitating customers in rural areas by providing doorstep services to bridge the digital divide.

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