Lok Sabha Question No. 4419 (UNSTARRED), answered on 2016-08-12
Subject: Brick and Mortar Bank Branches
Ministry: FINANCE
Asked by: LADU KISHORE SWAIN

## GOVERNMENT  OF  INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK  SABHA UNSTARRED QUESTION  No.  4419

TO BE ANSWERED ON  12 th  AUGUST, 2016  (FRIDAY)/SRAVANA 21, 1938 (SAKA)

## Brick and Mortar Bank Branches

## 4419. SHRI  LADU KISHORE SWAIN:

Will the Minister of FINANCE be  pleased to state:

- (a) whether the Government proposes to open brick and mortar bank branches in the
- country within the target period;
- (b) if so, the details thereof, State-wise including Odisha;
- (c) whether the Government has issued guidelines/directions to the Scheduled Commercial Banks in this  regard,  if  so,  the  details  thereof  and  if  not,  the  reasons
- therefor; and
- (d) the  corrective  measures  taken  by  the  Government  to  achieve  the  target  within  the stipulated time?

## Answer The  Minister of State in the Ministry of Finance (SHRI  SANTOSH KUMAR GANGWAR)

(a) to (d)   To   promote   financial   inclusion and   to extend   the   banking   network   in unbanked  areas, general  permission has  been  granted  by  Reserve  Bank of  India (RBI)   to  domestic   Scheduled   Commercial   Banks  (SCBs)  including  Public   Sector Banks (excluding Regional   Rural   Banks)   to   open 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   branches   opened   during a   financial   year   being opened   in   unbanked   rural (Tier 5 and Tier 6)   centres (population upto 9999).   RBI has   also   specified   that the   total   number   of   branches   opened   in Tier 1 centres (population  100000  and  above)  during  the  financial  year cannot exceed  the  total number of branches opened  in Tier 2 to Tier 6  centres (population upto 99999)  and all centres in  the  North Eastern States and  Sikkim.

For   increasing banking penetration and financial inclusion, RBI has advised all State Level Banker's Committee (SLBC) Convenor banks vide circular No FIDD.CO.LBS.BC. 82/02.01.001/2015-16  dated  December  31,  2015  to  identify  villages  with  population above 5000 without a bank branch of a scheduled commercial bank in their state.      As reported  by  SLBCs,  a  total  of  6593  villages  have  been  identified  and  allotted  among scheduled commercial banks (including Regional Rural Banks) for opening of branches. State/UT-wise details are given in Annexure.   The   progress   is     monitored   by   RBI. Opening of bank branches is a  commercial decision  of  the  banks  taken  in accordance with the branch opening policy of RBI.

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## Annexure to Lok Sabha Question No. 4419 for 12.08.2016 raised by Shri Ladu Kishore Swain, M.P. regarding  "Brick and Mortar Bank Branches"

|   Sr. No | States            |   No of villages allotted |
|----------|-------------------|---------------------------|
|        1 | A & N Islands     |                         0 |
|        2 | Andhra Pradesh    |                       569 |
|        3 | Arunachal Pradesh |                         0 |
|        4 | Assam             |                       123 |
|        5 | Bihar             |                      1640 |
|        6 | Chhattisgarh      |                        29 |
|        7 | D and N Haveli    |                         0 |
|        8 | Daman and Diu     |                         0 |
|        9 | Delhi             |                         1 |
|       10 | Goa               |                         1 |
|       11 | Gujarat           |                       394 |
|       12 | Haryana           |                       194 |
|       13 | Himachal Pradesh  |                         1 |
|       14 | J and K           |                       104 |
|       15 | Jharkhand         |                       137 |
|       16 | Karnataka         |                       210 |
|       17 | Kerala            |                         6 |
|       18 | Lakshadweep       |                         0 |
|       19 | Madhya Pradesh    |                        47 |
|       20 | Maharashtra       |                       281 |
|       21 | Manipur           |                        38 |
|       22 | Meghalaya         |                         0 |
|       23 | Mizoram           |                         0 |
|       24 | Nagaland          |                        16 |
|       25 | Orissa            |                        78 |
|       26 | Puducherry        |                         4 |
|       27 | Punjab            |                        54 |
|       28 | Rajasthan         |                       171 |
|       29 | Sikkim            |                         0 |
|       30 | Telangana         |                       255 |
|       31 | Tamil Nadu        |                       926 |
|       32 | Tripura           |                        19 |
|       33 | Uttar Pradesh     |                       571 |

| 34   | Uttarakhand   |    7 |
|------|---------------|------|
| 35   | West Bengal   |  717 |
|      | Total         | 6593 |

Source: RBI