"The banks must improve micro management of workforce to deliver services to the people and take initiatives among others to encourage the prospective customers to open their saving accounts," he said, addressing a seminar on the topic 'Bihar: Banking on Inclusion'.
"There appeared to be a lack of transparency in the functioning of the banks to deliver the services to the people," Kumar said.
He said the state government wanted to implement various welfare schemes through banks, but the results have not been satisfactory due to lack of transparency in the functioning of the banks.
Kumar said the state government had decided to distribute relief to 2.5 crore flood-affected people in 22 districts in 2007, but several beneficiaries could not receive their payment due to "indifference" of the banks.
It was due to the indifference of the banks that the state government enacted the Right to Public Service Act last year to deliver services to the people and may consider newer projects in future for further improvement in delivery system, he said.
Kumar said that the enactment of the Citizens Charter bill was a panacea for better delivery system to the people and the banks should also be brought under the ambit of the proposed law.
"There should be provision for punishment to the banks and its errand employees for poor delivery of services and taking graft for services," he said.
The Chief Minister also pulled up the banks for not opening new accounts, particularly no-frill accounts, to cater to implementation of payment of scholarships and other financial schemes to the people.
