Banking services to as many as 432 villages of East Godavari basin are yet to be started. The delay has been due to the selection of the mode in which the service would be extended to these villages.
According to directives released by the Reserve Bank of India, all villages having population more than 2000 need to be brought under banking services. As per this directive 432 villages had been identified for th purpose in the Godavari basin. The program was to start from 1st April 2010 and was scheduled to be completed in this year but the program still remains to be initiated.
The programme is expected to cover all banking operations including lending and recovery of loans to women's self-help groups, implementation of various government schemes and the loan collection with the prime motto of development of savings among rural population.
Sources said the lead bank in the district, Andhra Bank and also the largest lender of the country, SBI are still to give a start to their plans.
17 commerical banks had received permission for the purpose from RBI and had been given three options for their 'modus operandi.' The three options were to either start a branch or mobile banking services or appoint business correspondents on behalf of banks.