Lok Sabha Question No. 1215 (UNSTARRED), answered on 2025-12-08
Subject: Banks in Muzaffarnagar
Ministry: FINANCE
Asked by: Shri Harendra Singh Malik

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 1215

ANSWERED ON MONDAY, 08 DECEMBER 2025/ AGRAHAYANA 17, 1947 (SAKA)

## Banks in Muzaffarnagar

## † 1215. SHRI HARENDRA SINGH MALIK:

Will the Minister of FINANCE be pleased to state:

- (a) the procedures and necessary criteria for opening a new branch of a Government Bank in the rural areas of the country;
- (b) whether there is any proposal under consideration for opening of new branches of Government banks in the rural areas of western Uttar Pradesh including Muzaffarnagar district, if so, the details thereof and if not, the reasons therefor; and
- (c) whether the norms for setting up new bank branches in cash crop producing areas like sugarcane rich areas are different from the general standard and if so, the details thereof?

## ANSWER

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

(a) to (c) The endeavour of the Government is to ensure availability of banking outlet (Bank branch /  BC /  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, as on 31.10.2025, 99.91% villages in the country are covered with banking outlets (Bank Branch / BC / IPPB) within a radius of 5 Km.

Reserve  Bank  of  India  (RBI)  has  also  granted  general  permission  to  domestic  Scheduled Commercial Banks (excluding Regional Rural Banks) to open banking outlets including branches 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).

Moreover, as per the extant RBI guidelines, rolling out of banking outlets in uncovered areas is a continuous process looked after by the State Level Bankers' Committee (SLBC)/ Union Territory Level  Bankers  Committee  (UTLBC),  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. The data for such proposals is not maintained centrally.

As per JDD app, all the inhabited villages of Muzaffarnagar District of Uttar Pradesh (UP) are covered by a Banking Outlet within 5km radius. Further, the position of Banking infrastructure in Muzaffarnagar District of UP, as on 31.10.2025, is as under:

| Banking Infrastructure in Muzaffarnagar District   | Banking Infrastructure in Muzaffarnagar District   | Banking Infrastructure in Muzaffarnagar District   | Banking Infrastructure in Muzaffarnagar District   | Banking Infrastructure in Muzaffarnagar District   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| District                                           | Branch                                             | BC                                                 | ATM                                                | IPPB                                               |
| Muzaffarnagar                                      | 343                                                | 3103                                               | 214                                                | 227                                                |