Finance ministry stresses on financial inclusion in LWE areas

The goverment of India is laying special emphasis on expansionof banking services in the LWE (left wing extremism) affected areas of the country.

The government has identified 35 most LWE affected districts across seven states. The states are  Odisha, Andhra Pradesh, Telangana, Maharashtra , Chhattisgarh, Bihar and Jharkhand.

“Although all-round development has been made in expansion of banking activities across the country in the recent past yet progress in LWE affected areas have not been at par withother parts of the country," Ashok Kumar Singh, Director at  the department of financial services under the ministry wrote to the General managers of SLBC (State Level Bankers’ Committee) convener banks of the seven states.

For fastening the pace of banking activities in 35 most affected LWE districts, the ministry has requested the SLBC convener banks to remain in constant touch with the state administration regarding opening of branch  and installation of ATMs, particularly at campuses of  central paramilitary forces stationed at such LWE affected districts. SLBCs are also asked to monitor the issuance of RuPay debit cards in all the eligible accounts and also ensure availability of ‘Bank Mitras’ in these areas.

Stating that financial inclusion, an enabler for inclusive growth, is national priority of the government, the ministry of finance said financial inclusion is important as it provides an avenue to the poor for bringing their savings into  the formal financial system besides enabling them to get benefits of various schemes under Direct Benefit Transfer (DBT).

Earlier, National Bank for Agriculture & Rural Development (Nabard) had pledged support to banks for opening branches in the un-banked villages in the LWE affected districts. Nabard had offered support for solar-powered VSAT connectivity.

Nabard, in a letter to chairmen and chief executive officers (CEO) of the scheduled commercial banks, regional rural banks, state cooperative banks, had  said that the expansion of banking network in LWE affected districts is critical for the empowerment of people in those areas.

"No erratic connectivity is a major deterrent for the banks to open new branches in the LWE districts. With a view to expand banking in LWE districts, it has been decided to provide VSAT connectivity support for new branches opening in the 150 districts from Financial Inclusion Fund", Nabard had said in its letter.