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Roadmap for opening of banking outlets in unbanked villages.


  1. As one of the major recommendations of the High Level Committee was the need to achieve 100% financial inclusion through penetration of banking services in the rural areas, a phase wise approach has been adopted to provide door step banking facilities in all the unbanked villages in the country. In November 2009, under Phase- I, guidelines for preparation of Roadmap for providing banking services in villages with population more than 2000 was issued. After successful completion of Phase-I by March 2012, a roadmap to provide banking services in unbanked villages with less than 2,000 population has been rolled out in June 2012.


  2. Guidelines were issued to SLBC convener banks advising them to prepare a roadmap covering all unbanked villages with less than 2000 population for providing banking services in a time bound manner. SLBC convenor banks have been advised that the Roadmap for providing banking services to all the remaining unbanked villages in the country is to be prepared and villages allocated to banks so as to ensure that all DBT beneficiaries are covered. The objective is to provide a bank account to every household/person throughout the country. To start with, banks have been advised to provide door step services to DBT beneficiaries to facilitate transfer of all State benefits including MGNREGA wages and various cash subsidies to beneficiaries by direct credit to the bank accounts, through regular visits of BCs to the allocated villages and over a period of time, provide all kinds of banking services viz. remittances, recurring deposit, entrepreneurial credit in the form of KCC and GCC, insurance (life and non-life) and other banking services to all the residents of the village through a mix of brick and mortar branch and BC network. The plan of coverage under the road map for providing banking outlets in villages with population below 2000 is expected to be completed by March 2016 in all the unbanked villages with population less than 2000. The intention of allotting the unbanked villages, amongst various banks is to ensure that these villages are provided with at least one banking outlet for extending banking facilities. The above initiative, however, does not deny the opportunity for any other bank to operate in these areas and extend banking services based on the available business potential.