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Accepting the request of the banks, the Odisha government has extended the time limit for opening of bank branches in 4,597 unbanked gram panchayats in the state from three years to five years.
In May this year, the state government had directed the banks to open branches in the unbanked gram panchayats by March 2017.
Expressing their inability to meet this deadline, the bankers had sought more time to cover the unbanked panchayats.
Officials said the department of finance has given its nod for the extension of the time limit for coverage of all the unbanked gram panchayats and the controlling heads of the banks have been asked to prepare a road map for opening of their respective bank branches.
As per the directives of the Reserve Bank of India (RBI), at least five per cent of the unbanked villages are to be covered by brick and motor branches by March 2015. This necessitated opening of 2361 new branches in the state.
However, only 316 brick and mortar branches have been opened in the unbanked villages by March 2014 and the balance branches (2045) are to be opened by the end of this fiscal which the banks find difficult to achieve.
" Keeping in view of the fact, we have distributed the target to open branches in unbanked gram panchayats in such a manner that 2045 branches will be opened during the current year (2014-15) and next year (2015-16) so as to achieve the branch opening target of RBI i.e 2361 branches. The yearly target for the remaining 2236 branches has been distributed almost equally for the next three years (2016-17, 2017-18 & 2018-19). Total 4597 branches will be opened covering all unbanked gram panchayats by March 31, 2019", SK Nandi, convenor, the state level bankers committee (Odisha) wrote to all the controlling heads of the banks.
The controlling heads have been asked to furnish the list of the gram panchayats where the individual banks propose to open branches month wise for this year and yearly lists for next four years to be tabled in the upcoming 136th SLBC meeting for discussion and monitoring.
Out of the total 4597 branches to be opened by banks in the unbanked gram panchayats, public sector banks will open branches in 3048 panchayats while private banks will cover 861 unbanked gram panchayats. Odisha Gramya Bank and Utkal Grameen Bank have been allocated 331 and 357 panchayats respectively.To extend banking facility to all the panchayats, the state government has assured that banks would be provided space in panchayat buildings and Rajiv Gandhi Seva Kendras free of cost for five years.
"The commercial banks opening their branches in unbanked panachayats will be given access to government funds meant for that panchayat", UN Behera, secretary, finance department had said in a recent SLBC meeting.
