Lok Sabha Question No. 3791 (UNSTARRED), answered on 2026-03-16
Subject: Nationalized Bank Branches in Madhya Pradesh
Ministry: FINANCE
Asked by: Smt. Anita Nagarsingh Chouhan

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

## LOK SABHA UNSTARRED QUESTION No. † 3791

ANSWERED ON MONDAY, 16 MARCH, 2026/PHALGUNA 25, 1947 (SAKA)

## Nationalized Bank Branches in Madhya Pradesh

## † 3791. SMT. ANITA NAGARSINGH CHOUHAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware that due to the inadequate number of nationalized bank branches in Madhya Pradesh particularly in Ratlam Parliamentary Constituency of Ratlam-Jhabua-Alirajpur, the general public, farmers, self-help groups, small businesses and students are facing difficulties in accessing banking services, loans, insurance and direct benefit transfers;
- (b) if so, whether the Government  is considering any proposal to open new  nationalized banks/branches to strengthen financial inclusion in the said area, if so, the district-wise details thereof;
- (c) whether the Government has formulated any specific action plan to expand mobile banking units, the Bank Mitra/Business Correspondent (BC) model and digital infrastructure to increase banking access, if so, the details thereof; and
- (d) whether the Government is likely to ensure time bound action in accordance with the guidelines in this regard and if so, the details thereof?

## ANSWER

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

(a) to (d) As per the extant Reserve Bank of India (RBI) guidelines, rolling out of banking outlets in uncovered areas is a continuous process looked after by the State/ Union Territory Level Bankers' Committee (SLBC/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.

All the 539 inhabited villages in Alirajpur District, 1055 villages in Ratlam District and 784 villages in Jhabua District are covered by either a Bank branch, a Business Correspondent (BC), or an IPPB

centre within a radius of 5 km. Details of Banking infrastructure in Ratlam Constituency of RatlamJhabua-Alirajpur in Madhya Pradesh, as on 31.01.2026, is as under:

| District                | Branches   | BC       | ATM   | IPPB   |
|-------------------------|------------|----------|-------|--------|
| Alirajpur               | 52         | 1,613    | 30    | 101    |
| Jhabua                  | 91         | 2,967    | 52    | 116    |
| Ratlam                  | 192        | 3,788    | 189   | 188    |
| Total in Madhya Pradesh | 8,629      | 1,74,869 | 9,254 | 10,416 |

Source: JDD App

Further,  Reserve  Bank  of  India  (RBI)  has  permitted  Commercial  Banks,  Small  Finance  Banks, Payments Banks, Local Area Banks and Regional Rural Banks, to open bank branches anywhere in India without prior approval, provided 25% are in unbanked rural areas. Simultaneously, the country has  accelerated  its  digital  transformation  through  the  deployment  of  119  Digital  Banking  Units (DBUs), as of December 2025, bridging the gap between traditional and digital payment adoption and ensuring that sophisticated banking services are accessible across both urban and rural landscapes.

Also, the endeavor of the Government is to ensure availability of banking outlet (Bank branch/ BC /India Post Payments Bank (IPPB)) within 5 kilometres (km) of all inhabited villages in the country. Availability of banking outlets is monitored by a Geographic Information System (GIS) based App., namely, the Jan Dhan Darshak Application (JDD App). Based on the data uploaded by Banks on the JDD App, 99.92% villages in the country are covered with banking outlets (Bank Branch/ BC / IPPB) within a radius of 5 km as on 27.02.2026.

******