Nearly all inhabited villages in India, amounting to 99.92%, now have a banking outlet within a five-kilometer radius, as disclosed in Parliament. The Union Territory of Dadra and Nagar Haveli boasts 100% coverage with banking outlets within the same distance, according to Minister of State for Finance Pankaj Chaudhary. The Jan Dhan Darshak App, a Geographic Information System (GIS) monitoring tool, displays extensive coverage by banks, business correspondents, and India Post Payments Bank outlets across the country, as per the Finance Ministry.
Major hurdles in expanding banking infrastructure include connectivity issues, infrastructure limitations, and a lack of suitable premises. The State Level Bankers’ Committee (SLBC) or Union Territory Level Bankers Committee (UTLBC) oversee the continuous process of rolling out banking outlets in underserved areas, as per RBI guidelines. The consultation involves the concerned state government, member banks, and other stakeholders, the minister highlighted.
Banks evaluate proposals for new banking outlets based on RBI directives, their business strategies, and commercial feasibility. Surveys are conducted by banks to assess the viability of opening new banking outlets as needed. India Post Payments Bank (IPPB), a government-owned bank under the Department of Posts, utilizes the vast postal network of over 1.65 lakh post offices and 3 lakh postal employees to provide banking services. Recognized for its significant role in expanding digital payments and financial inclusion nationwide, IPPB has received the ‘Digital Payments Award 2024-25’.
