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Come March 2015, all the unbanked villages in Punjab and Haryana having population below 2000, would be brought under banking services, according to the bankers.
According to the SLBC (State Level Banker’s Committee) data, out of the total 10,132 unbanked villages in Punjab, banking services has been provided to 4,464 villages, while in Haryana banking services has been extended to 1,890 villages, out of the total 4,077 unbanked villages as on December 31, 2013.
During the recent held SLBC meet in Chandigarh for Punjab and Haryana it was decided to cover all the unbanked villages in these two states by March 2015 to implement financial Inclusion plan.
Depending upon the viability, the Banks might open full fledge Branches, Ultra Small Branches, Brick and Mortar Branches or appoint Business Correspondent Agents (BCA). This was decided during the meeting convened by Punjab National Bank, the lead bank for these two states.
According to the SLBC data, in Punjab total 10,132 unbanked villages in the above population segment in the state have been allocated to various banks. As far progress is concerned, banks in the state of Punjab have covered 4464 villages as on December 31, 2013.
While in Haryana, total 4,077 unbanked villages in the above population segment in the state have been allocated to various banks. As on December 31, 2013 banks have covered 1890 villages which is 85% of pro rata targets of 2224.
A monitoring and review mechanism has been instituted by the Banks to periodically assess and evaluate the progress made in allotment of villages and achieving the target indicated in the roadmap including the quality of the services provided by the banking outlets.
Bankers mentioned that banks need to follow their road maps very closely for providing banking services in allocated villages so as to cover all the villages positively by March 2015.
It is worth noting that earlier Reserve Bank of India has expressed concern about the tardy progress in covering of villages and has desired to draw up a monthly plan up to March 2014 to cover the remaining villages with population below 2000.
To facilitate the banks in achieving the target of Financial Inclusion, during the meeting Bankers also referred to the directions of the Department of Financial Services, Ministry of Finance, Government of India to all the banks that a brick & Mortar Branch be opened if the population of village in under banked district is more than 5,000 or more than 10,000 in other districts.
At places where the opening of a conventional brick & mortar branch is, presently, not viable, in such districts the bank may set up Ultra Small Branches, Brick and Mortar Branches or appoint Business Correspondent Agents (BCA).
It is pertinent to mention here that in Punjab there are around 5,941 bank branches of different banks including commercial, regional rural banks, cooperative banks etc as on December 2013, out of total 2,726 are in rural areas. While, in Haryana, there are 1881 bank branches which are in rural area, out of the total 4,318 bank branches.
