Question : Banking Services in Rural Areas

(a) whether the Government has taken note of lack of banking facilities in unserved rural/backward/hilly/remote areas;
(b) if so, the details thereof along with the norms/guidelines laid down by the Reserve Bank of India for opening of bank branches in said areas;
(c) the total number of branches opened by public and private sector banks along with the number of the branches opened in unserved rural, backward, hilly and remote areas during the last three years and the current year, bank and State/UT-wise;
(d) whether the Government provide banking facilities through post offices and if so, the details thereof; and
(e) the steps taken/being taken by the Government for opening of bricks and mortar
banks in each of unbanked gram panchayats so as to ensure banking facilities to
each household of the country?

The Minister of State in the Ministry of Finance


(a) to (e) To promote financial inclusion and to expand 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. As on 30.09.2016, out of 134750 total bank branches of SCBs, 85043 bank branches are in rural and Semi-urban areas. State-wise number of bank branches opened by Public Sector Banks during the last three years and the current year is given in Annexure. India Post Payment Bank (IPPB) has been granted a banking license from the RBI on the 20th Jan 2017 and has launched banking facilities in Ranchi and Raipur.
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Annexure
Number of branches opened by public sector banks in unbanked rural centers during 2013-14, 2014-15, 2015-16 and 2016-17 (1.4.2016 to 30.9.2016)
STATE/UT 2013-14 2014-15 2015-16 2016-17
ANDAMAN & NICOBAR IS 1 1
ANDHRA PRADESH 81 70 45 10
ARUNACHAL PRADESH 1 2
ASSAM 43 11 8 1
BIHAR 113 54 22 3
CHANDIGARH 1
CHHATTISGARH 24 17 25 8
DADRA & NAGAR HAVELI 1 1 1 1
GOA 7 4 1
GUJARAT 91 68 37 10
HARYANA 54 51 14 3
HIMACHAL PRADESH 34 30 18 5
JAMMU & KASHMIR 3 1
JHARKHAND 40 33 18 15
KARNATAKA 188 114 59 14
KERALA 3 3 6
MADHYA PRADESH 58 35 11 7
MAHARASHTRA 145 65 55 13
MANIPUR 3
MEGHALAYA 2 2
MIZORAM 1 1 2
NAGALAND 1 1
NCT OF DELHI 9 2
ODISHA 87 77 46 16
PUDUCHERRY 3
PUNJAB 111 88 34 5
RAJASTHAN 92 90 67 5
SIKKIM 1
TAMIL NADU 109 75 35 7
TELANGANA 39 39 23 4
TRIPURA 3 1
UTTAR PRADESH 521 188 96 9
UTTARAKHAND 23 28 7 3
WEST BENGAL 106 91 20 7
ALL INDIA 1,994 1,242 654 148
Source: RBI