Rural pilot project of RBI gets setback
By Ankit Sharma
Dec 1, 2010
Print    Email    RSS   

Banking and monetary regulator, Reserve Bank of India had set up a viability gap funding scheme in the north eastern region so as to aid banks to increase their branch network there.

But the scheme seems to have received serious setback with meager response coming out of the pilot project in the north east.

Had the scheme been a success in the NE region, the apex bank would have given the project national stature. But the project seems to be a big failure with not even a single branch being set up by using the money given by the apex bank.

"It's an embarrassment for us. There is not much progress under this scheme," an RBI official in Mumbai said.

The NE states bear a major chunk of unbanked areas in the country, and the failure of the project also comes as a setback to the financial inclusion plan of RBI.

The RBI has prepared a list of as many as 35 under-banked areas across Arunachal Pradesh, Manipur, Meghalaya, Nagaland and Tripura for the pilot run of the scheme.

According to a senior SBI official, "Under this scheme, the state government has to provide security and basic infrastructure like electricity and water. But despite repeated reminders, it is difficult to get these facilities from them."

The only exception seems to be Meghalaya where SBI, Punjab National Bank and United Bank of India are planning to open branches in the next month.

"Other governments are not as forthcoming as Meghalaya in promising security arrangements. We are in talks with them," the RBI official in Mumbai said.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Spoiled credit history? - Get a secured...
Best airline rewards credit cards in...
Kisan Credit Card: Allowing easy credit...
South Indian Bank launches Mobile banking...
12 point conduct checklist for bank and...

Daawat*Call giℛℒ escort In ZiRaKpUr OOOOOOOOOO...
Good Morning, i forgot my FCMB Account Number and...
Radhey@09646870399 @Escoℛts In#Chandigarh...

91st Founders day of the Karnataka Bank Feb 18, 2015
Banks on strike from 25th February Feb 16, 2015
SBT bank postponed the Open House meet Feb 13, 2015
Yes bank planning to line up for credit card portfolio Feb 12, 2015
Pocket banking – new app by ICICI bank Feb 11, 2015
News Archive