Question : Regional Rural Banks-Grameen Banks

(a) whether the Branches of Regional Rural Banks (RRBs)/Grameen Banks are inadequate in the country to facilitate the payments made under various schemes, if so, the details thereof;

(b) the number of the Regional Rural Banks/Grameen Banks branches functioning in the country in the year 2014 as well as their number at present, State/UT-wise;

(c) whether the Government has formulated any parameter for opening of RRBs/Grameen Banks in rural areas and if so, the details thereof; and

(d) the efforts made/being made by the Government to improve the banking facility in rural areas?

Minister of State in the Ministry of Finance

(a) to (c): RBI vide its Master Circular dated 1st July, 2015 on Branch Licensing has prescribed guidelines for opening of RRBs’ branches. As per these guidelines, RRBs are required to decide on the policy and strategy for setting up new branches/offices etc., taking into account the yearly business plan, potential for business and profitability of the proposed branches, efficacy of the internal control system etc. These guidelines, inter-alia, provide for opening of RRB branches in Tier II to Tier VI centres (with population of up to 99,999 as per Census 2001) without having the need to take prior permission from RBI in each case, provided they fulfil certain conditions.

As per NABARD, as on 31st March 2017, there were 21,422 branches of Regional Rural Banks (RRBs) in the country. Besides, the RRBs have 3933 number of ultra-small branches which also provide limited banking services. The State/UT-wise list of number of branches of RRBs as on 31st March, 2014 and 31st March, 2017 is enclosed asAnnexure.

(d): As per RBI directives, banks have been given freedom to open branches in Tier II to Tier VI centres without prior permission of RBI. Further, to improve the banking facilities in rural areas, the Banks have been given freedom to appoint Business Correspondents who provides doorstep banking in rural areas, by appropriately leveraging technology.

To improve the banking facilities across the country, Pradhan Mantri Jan-Dhan Yojana (PMJDY) was started w.e.f. 28.08.2014 with the aim to provide minimum one bank account per household. Under the Yojana, as on 20.12.2017, 30.75 crore PMJDY accounts have been opened across the country, out of which 18.08 crore accounts are in rural/semi-urban areas. Account holders under PMJDY, do not require to maintain minimum balance. Under the Yojana, account holders are issued RuPay card with an inbuilt accidental insurance cover of Rs.1 lakh.
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