Lok Sabha Question No. 1219 (UNSTARRED), answered on 2025-12-08
Subject: 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. 1219

ANSWERED ON Monday, December 8, 2025/Agrahayana 17, 1947 (Saka)

## Bank Branches in Madhya Pradesh

## † 1219. SMT. ANITA NAGARSINGH CHOUHAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware of the urgent need for bank branches in the tribal majority areas of Raipuria and Madrani (Jhabua district) and Kakrana (Alirajpur district) of Madhya Pradesh;
- (b) if so, whether the Government has conducted any survey or prepared any proposal for establishing branches of nationalised banks in these areas, if so, the details thereof;
- (c) if  not,  whether  the  Government is likely to consider establishing new bank branches in these regions in view of their geographical inaccessibility, growing population and the need to ensure access to various Government schemes, if so, the details thereof; and
- (d) the steps taken/proposed to be taken by the Government so far for establishing bank branches in the aforesaid areas?

## 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.

In terms of the revised guidelines issued by RBI vide circular dated May 18, 2017 on 'Rationalization of Branch Authorization Policy' the term 'Branch' has been substituted by 'Banking Outlet (BO)' which includes both physical brick and mortar branches and Business Correspondent (BC) outlets, to enable banks in expanding their network even in remote rural areas in a cost-effective manner for hassle free services to customers.

RBI has  granted  general  permission  to  domestic  Scheduled  Commercial  Banks  (excluding  Regional Rural Banks) to open banking outlets including branch 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).

Further, 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, Jan Dhan Darshak Application (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.

As per the JDD App, the villages namely Raipuria and Madrani in Jhabua District and Kakrana village in Alirajpur District of Madhya Pradesh are covered by banking outlets within 5 km radius.

Details of Banking Infrastructure in Jhabua and Alirajpur District of Madhya Pradesh, as on 30.11.2025, is as under:

| State          | District   |   Branches |   BC |   ATM |   IPPB |
|----------------|------------|------------|------|-------|--------|
| Madhya Pradesh | Jhabua     |         91 | 2963 |    52 |    116 |
| Madhya Pradesh | Alirajpur  |         52 | 1610 |    31 |    101 |

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Source: JDD App