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Even as the government pushes hard for digital India, including in the hinterland, Gujarat has witnessed a lack of interest by bankers in financial inclusion in rural areas.
According to State Level Bankers' Committee (SLBC) of Gujarat, the state has 49 financial literacy centers (FLC) but not a single one in the rural areas.
SLBC Gujarat officials admitted that financial literacy activity has not been done properly and that post-demonetisation, with the government setting up digital infrastructure in rural areas, banks may face challenges.
Gujarat has 49 FLCs in all districts by respective lead banks and Regional Rural Banks (RRBs). Of these 49 FLCs, one is in Ahmedabad, 33 are in semi-urban and 15 in urban areas, whereas no FLC has been opened in rural areas so far.
As per the revised guidelines of Reserve Bank of India (RBI), FLCs and rural branches are advised to conduct at least one special camp per month for newly included people in financial system and one target group specific camp for farmers, self-help groups (SHGs), micro and small entrepreneurs, senior citizens and school children.
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SLBC official said: "It is fact that banks are not so active in financial literacy activity in rural areas. After demonetisation, difficulties have risen in villages and at this time digital networking will be difficult for banks as consumers are not much aware of cashless transaction."
Post demonetisation, about Rs 1,972 crore have been deposited in Pradhan Mantri Jan Dhan yojana (PMJDY) in the state. According to SLBC data, there are over 7.38 million Jan Dhan accounts opened so far by the banks and about 3.26 million RuPay cards have been distributed to these account holders.
According to SLBC data, as on quarter ended September 2016, banks have extended advances of Rs 4,48,774 crore as against Rs 4,33,840 crore in the quarter ended June 2016. During the period gross non-performing assets (NPAs) fell from 6.78 per cent to 6.52 per cent and stood at Rs 29,276 crore.
