State Bank of India has set up its financial inclusion plan for this fiscal and submitted it to the RBI. The bank this year aims to include 11,943 villages under the umbrella of financial literacy. According to the norms set by RBI all these villages would have a population of 2000 and above.
A directive has been let out by RBI to all banks to sunbmit their financial inclusion plan after getting it approved by their respective boards.
Data sources say that out of 6,00,000 villages existing in the subcontinent, around 64,000 with a population of more than 2000 are still not in the vicinity of a proper banking channel. These villages are still in the clutches of the unconventional sources of credit and deposit mechanism. Financial inclusion is the need of the hour- a prime issue in front of the Government.
As per the plan submitted by SBI, it would be opening branches in 512 villages and the remaining villages would be covered by business correspondents. A senior bank official said that SBI would charge customers availing facilities through business correspondents.
Apart from SBI, other public sector banks are also on the same drive. Bank of India has plans to include 7000 villages in this umbrella in the upcoming three years of which 2100 would be covered before 31st March 2011.
Bank of Baroda has targeted 3000 unbanked villages. It would be taking aid of business correspondents for the same. Union Bank of India has planned to provide banking services at least once a week to 4,500 villages along with spreading its services to 2,500 villages still not touched by channels of banking.