The Reserve Bank on tuesday asked banks to finalise the road map for providing banking services to villages with less than 2,000 population by August.
“The finalised road map with details of allocated villages to various banks should be submitted to the respective Regional Office of Reserve Bank of India as per format given latest by August 31, 2012,” the RBI said in a notification to banks.
This will help the government to transfer the benefits directly into the account of the beneficiary. It would also save the government administrative cost presently incurred in cash disbursements of social benefits.
In a surprise move, country's largest bank SBI today increased interest rates on select fixed deposits by 0.25 per cent.