If everything goes well, Haryana could very soon boast of bank branches within a radius of every 5 Km to bring the rural masses under the ambit of banking services.
In Haryana, there are 6,764 villages and there are only about 1,035 rural branches which covers only 15 per cent of the villages. Overall, the state has 2,973 bank branches. Speaking to Business Standard, Rakesh Sethi, executive director, Punjab National Bank, “The SLBC will prepare the guidelines for opening up new branches in unbanked areas, keeping in mind to bring the rural population under the ambit of banking services. Depending upon the viability, the unbanked area will either be covered by opening up branches, ultra small branches or through business correspondent agents (BCA) model and also the network would be strengthened in rural area.”
According to Sethi, 629 villages with population varying from 1,600-2,000 have already been allotted to the banks for opening up branches under the service area approach. The banks have to provide banking facilities under Swabhimaan by March 2013.
To facilitate the banks in achieving the target of ‘financial inclusion’, officials also referred to the directions of the department of financial services, ministry of finance, Government of India, to all the banks that a brick and mortar branch be opened if the population of village in under banked district is more than 5,000 and 10,000 and above in other districts. At places where the opening of a conventional brick and mortar branch is presently not viable, in such districts, banks may set up ultra small branches.
Also, the department of financial services, ministry of finance, Government of India vide its letter dated July 10, 2012, has referred to the RFP floated by various public-sector banks on geographical cluster basis for business correspondents services for ensuring greater financial inclusion and to provide comprehensive financial services to the underprivileged, particularly in banked and under-banked areas. The BCAs will render services on behalf of the banks
