PSUs to open 300 brick and mortar banks in unbanked areas of India

In order to promote financial inclusion in the country, 300 brick-and-mortar banks will be opened in remote unbanked areas by the public sector undertakings (PSUs) within December 2022. Those unbanked villages which have a population of more than 3000 and have no financial institution shall be considered for fulfilling this target.

This decision was taken after a review conducted by the heads of public sector banks with the Secretary of Financial Services last month. The State Level Bankers’ Committee (SLBC) by December 2022 has been entrusted with the task to open branches at allocated locations by the respective State Level Bankers’ Committee (SLBC).

Out of the total 300 new branches, 95 branches will be opened in Rajasthan, 54 in Madhya Pradesh, 38 in Gujarat, 33 in Maharashtra, 32 in Jharkhand, and 31 in Uttar Pradesh. There has been no mention of opening new branches in the Northeastern states.

Among the banks, the Bank of Baroda will open 76 branches and the State Bank of India will open 60.

Considering India to be a developing country, financial inclusion is a national priority of the government for inclusive growth. The opening of 300 branches in the unbanked areas shall provide an avenue for the poor to bring their savings into the formal financial system as against the unprincipled money lenders. It is an avenue to remit money to their families in villages.

The project is undertaken to provide financial inclusion and support to the marginalized and socio-economically neglected classes through various schemes including the Pradhan Mantri Jan Dhan Yojana (PMJDY). Starting on August 28, 2014, as high as 46 crore bank accounts has been opened under PMJDY with a deposit balance of Rs. 1.74 lakh crore with its expanded coverage to 67 per cent rural or semi-urban areas as well 56 per cent women Jan Dhan Account holders.

The Pradhan Mantri Jan- Dhan Yojana is a government scheme launched by the government of India to provide easy access to financial services such as remittance, credit, insurance, pension, savings, and deposit accounts to the poor and needy section of our society. Under PMJDY zero balance accounts can be opened by individuals.

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