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Tardy progress of Financial Inclusion in Orissa

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BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jan 20 2013 | 8:04 PM IST

The Financial Inclusion Plan (FIP) in Orissa is progressing at a sluggish rate. Out of the 1878 unbanked villages identified in the state under FIP, progress for opening of bank branches has been made in only 270 villages till the end of December last year. According to deadline set by the Reserve Bank of India (RBI), all these unbanked villages are to be covered by March 2012.

State Bank of India (SBI), which has been allotted 467 villages by the State Level Bankers' Committee (SLBC) under FIP, the bank has achieved headway in 262 villages where it has extended banking facilities through banking correspondents. The bank has stated that the remaining 205 branches will be covered during the current financial year.

However, UCO Bank, which has the lead bank responsibility in the state, has made progress in only three out of 174 villages allotted to it.

While Andhra Bank has opened branch in only one out of 69 villages allotted to it, Syndicate Bank has achieved progress in four out of its quota of 23 villages.

The other PSU banks and the five regional rural banks operating in the state- Kalinga Gramya Bank, Rushikulya Gramya Bank, Neelachal Gramya Bank, Baitarani Gramya Bank and Utkal Gramya Bank have been almost non-starters in opening branches in the unbanked villages for extending banking facilities.

Union Bank of India which was allotted 30 villages is yet to make progress in any of them. The bank, however, proposes to cover 18 villages in the current financial year.

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Indian Overseas Bank which was allotted 59 villages has not informed anything regarding the progress made by it under FIP.

United Bank of India has informed that it has appointed 52 banking correspondents and allotted 26 biometric machines. The bank which was allotted 79 villages has planned to cover 24 villages during the current financial year.

Similarly, Andhra Bank, which was allotted 69 villages, proposes to cover 34 villages under FIP during the current financial year. Punjab National Bank (PNB) was allotted 31 villages and it is yet to cover any village so far.

Central Bank of India, given the responsibility of 35 villages, proposes to cover 16 villages by March 31 this year. Bank of Baroda has identified a service provider for extending banking services in unbanked villages but is yet to cover even a single village out of its quota of 22 villages The bank has, however, assured to cover 11 villages under FIP in 2010-11

Neelachal Gramya Bank has been allotted 114 villages but it is yet to initiate action on implementation of FIP.

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First Published: Mar 12 2011 | 12:56 AM IST

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