Gramin Bank branches in 80 districts, says FM

In a bid to improve rural banking, the Union government will open Gramin Bank branches in 80 districts and will take steps to integrate and organise the existing ones, Finance Minister P Chidambaram said today.

The new branches will be opened in the districts which do not have such banks at present, he said while inaugurating the Pandian Grameen Bank's (PGB) Grammeen Tatkal Lending Scheme at Pallathur in the district.

The existing 99 Gramin Banks in the country would be organised to ensure that their branches functioned across the country, he said.

The strengthening of Grameen Banks was among the 'big schemes' of the government for the current fiscal. "The objective of the government is to help more villagers, including illiterates, open bank accounts and avail loans for agriculture and business," he said.

Efforts were on to revive the "degenerated" cooperative banks, he said, adding Prof Vaidhyanathan Committee had submitted its recommendations to this effect. A Rs 13,500 crore plan was also being implemented in stages to strengthen the cooperative banks, he added.

"Till the cooperative banks were properly revived, Gramin banks would have to serve the rural people," he said.

The two leading banks in Tamil Nadu "" Pallavan Grameen Bank and Pandian Grameen bank "" would get further strengthened by the government's initiative to organise and integrate the Grameen banks, he added.