Question : Banking Penetration

(a) the details of the per person availability of banks in the rural areas of the country, State/UT-wise;
(b) the details of the norms/criteria prescribed for opening of bank branches in the rural areas along with the number of Bank branches opened by the Public Sector Banks (PSBs) especially in the minority concentrated, hilly and remote areas of the country, State/UT-wise including Rajasthan and Lakshadweep;
(c) whether the Government proposes to make relaxation in the present law for nationalized bank to open new branches in rural areas, if so, the details thereof and if not, the reasons therefor;
(d) whether the Government is considering/already implementing the concept of Mobile Banks in the interior regions of the country for better financial inclusion and if so, the details thereof;
(e) whether the PSBs have fixed any target for sanctioning of loans particularly in tribal and hilly areas and if so, the details of the norms/guidelines issued by the Government in this regard; and
(f) the steps taken by the Government to increase the banking penetration especially in above regions, State/UT-wise?

The Minister of State in the Ministry of Finance


(a) As informed by Reserve Bank of India (RBI), the details of per person availability of banks in rural areas of the country is not available with them. However, State/UT wise number of bank branches of Scheduled Commercial Banks as on 31.3.2018, is at Annexure-1.
(b) (c) and (f) As per extant guidelines dated 18.5.2017 on rationalizing of Branch Authorisation Policy, RBI has granted general permission to domestic Scheduled Commercial Banks (excluding Regional Rural Banks), to open banking outlets 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 with population less than 10,000. For this purpose, banking outlets opened in any centre having population less than 50,000 in North Eastern states, Sikkim and also Left Wing Extremism (LWE) affected districts as notified by the Government of India are also considered as equivalent to opening of banking outlets in unbanked rural centres.

The number of branches of Public Sector Banks as on 31.3.2018 is at Annexure-2.

(d) RBI vide its circular dated 18.5.2017 has, inter-alia, allowed banks to open/operate mobile branches in all Centres. However, these mobile branches are not considered as Banking Outlets.
(e) Reserve Bank of India has issued master circular to all Scheduled Commercial Banks with targets under priority sector lending which includes agriculture, micro small and medium enterprises, export credit, education, housing, social infrastructure, renewable energy etc.