The Prime Minister of the country Mr. Modi has asked the PSU banks to open 200 million accounts within a year. The banks must open 200 new accounts from 15 august, 2014 onwards. This is to ensure that every citizen holds a savings account.
According to reports it was noticed that Of the 246.7 million households in the country, 144.8 million have access to banking. The govt. will set up a panel to monitor the progress of this task that will include the finance minister, the Reserve Bank of India governor and the chairmen of the Insurance Regulatory Development Authority. It will also be ensured that there is bank within 5 km of every house by the end of next fiscal year. In 2013, 14 state-run banks set up 7,840 branches across the country, one in four in the countryside.
There is also a proposal to set up a credit guarantee fund to cover defaults from such borrowers. Besides, insurance up to Rs 50,000 will be provided. Banks will also increase their services by establishing more number of full fledge branches across the several parts of the country including rural areas.