You are here: Home » Finance » News » Banks

Odisha govt for payments banks to open branches in un-banked areas

The state government has asked the Union Finance Ministry to instruct payments banks to set up branches in un-banked regions

The state government has urged the Union Ministry to instruct payments licensed by the Reserve Bank of India (RBI) to set up in regions in the state.

"The efforts by payments to establish will help supplement the work being done by public sector and private to open brick-and-mortar in the gram panchayats (GPs) of the state", said a senior government official.

The has licensed 11 entities to open payments -- Aditya Birla Nuvo, Airtel M Commerce Services Ltd, Cholamandalam Distribution Services Ltd, Department of Posts Ltd, Fino PayTech Ltd, National Securities Depository Ltd, Reliance Industries Ltd, Dilip Shantilal Sanghvi, Vijay Shekhar Sharma, Tech Mahindra Ltd and Vodafone m-Pesa Ltd. These payments are mandated to target financially excluded customers like migrant workers, low-income households and tiny businesses.

At present, out of 6,238 GPs of the state, as many as 4,597 GPs were identified as in 2014. The gram panchayats in have an average geographical area of 25 sq km. This is a reasonable size for having a bank branch so that people don't have to travel long distances to access one. If the villages are far away from the physical branch, the extension of banking service will not be satisfactory, even though such services may be provided through business correspondents (BCs). The State Level Bankers Committee (SLBC) has consequently decided to open a brick-and-mortar branch in each of the 4597 unbanked GPs.

According to SLBC data, have, until December 2015, opened 152 in GPs. In 2015-16, have established only 33 compared to the allocated target of 1,926 with most private sector drawing a blank. However, privately-owned HDFC Bank has opened 21 in the GPs, beating even the most networked State Bank of India (SBI), which only opened 17.

The state government is also providing space in GP offices free of cost for opening branches. There are 367 identified GPs where necessary infrastructure is already available. However, one of the major issues is availability of internet connectivity in remote locations.

image
Business Standard
177 22
Business Standard

Odisha govt for payments banks to open branches in un-banked areas

The state government has asked the Union Finance Ministry to instruct payments banks to set up branches in un-banked regions

Jayajit Dash  |  Bhubaneswar 

The new face of banking

The state government has urged the Union Ministry to instruct payments licensed by the Reserve Bank of India (RBI) to set up in regions in the state.

"The efforts by payments to establish will help supplement the work being done by public sector and private to open brick-and-mortar in the gram panchayats (GPs) of the state", said a senior government official.

The has licensed 11 entities to open payments -- Aditya Birla Nuvo, Airtel M Commerce Services Ltd, Cholamandalam Distribution Services Ltd, Department of Posts Ltd, Fino PayTech Ltd, National Securities Depository Ltd, Reliance Industries Ltd, Dilip Shantilal Sanghvi, Vijay Shekhar Sharma, Tech Mahindra Ltd and Vodafone m-Pesa Ltd. These payments are mandated to target financially excluded customers like migrant workers, low-income households and tiny businesses.

At present, out of 6,238 GPs of the state, as many as 4,597 GPs were identified as in 2014. The gram panchayats in have an average geographical area of 25 sq km. This is a reasonable size for having a bank branch so that people don't have to travel long distances to access one. If the villages are far away from the physical branch, the extension of banking service will not be satisfactory, even though such services may be provided through business correspondents (BCs). The State Level Bankers Committee (SLBC) has consequently decided to open a brick-and-mortar branch in each of the 4597 unbanked GPs.

According to SLBC data, have, until December 2015, opened 152 in GPs. In 2015-16, have established only 33 compared to the allocated target of 1,926 with most private sector drawing a blank. However, privately-owned HDFC Bank has opened 21 in the GPs, beating even the most networked State Bank of India (SBI), which only opened 17.

The state government is also providing space in GP offices free of cost for opening branches. There are 367 identified GPs where necessary infrastructure is already available. However, one of the major issues is availability of internet connectivity in remote locations.

RECOMMENDED FOR YOU

Odisha govt for payments banks to open branches in un-banked areas

The state government has asked the Union Finance Ministry to instruct payments banks to set up branches in un-banked regions

The state government has asked the Union Finance Ministry to instruct payments banks to set up branches in un-banked regions The state government has urged the Union Ministry to instruct payments licensed by the Reserve Bank of India (RBI) to set up in regions in the state.

"The efforts by payments to establish will help supplement the work being done by public sector and private to open brick-and-mortar in the gram panchayats (GPs) of the state", said a senior government official.

The has licensed 11 entities to open payments -- Aditya Birla Nuvo, Airtel M Commerce Services Ltd, Cholamandalam Distribution Services Ltd, Department of Posts Ltd, Fino PayTech Ltd, National Securities Depository Ltd, Reliance Industries Ltd, Dilip Shantilal Sanghvi, Vijay Shekhar Sharma, Tech Mahindra Ltd and Vodafone m-Pesa Ltd. These payments are mandated to target financially excluded customers like migrant workers, low-income households and tiny businesses.

At present, out of 6,238 GPs of the state, as many as 4,597 GPs were identified as in 2014. The gram panchayats in have an average geographical area of 25 sq km. This is a reasonable size for having a bank branch so that people don't have to travel long distances to access one. If the villages are far away from the physical branch, the extension of banking service will not be satisfactory, even though such services may be provided through business correspondents (BCs). The State Level Bankers Committee (SLBC) has consequently decided to open a brick-and-mortar branch in each of the 4597 unbanked GPs.

According to SLBC data, have, until December 2015, opened 152 in GPs. In 2015-16, have established only 33 compared to the allocated target of 1,926 with most private sector drawing a blank. However, privately-owned HDFC Bank has opened 21 in the GPs, beating even the most networked State Bank of India (SBI), which only opened 17.

The state government is also providing space in GP offices free of cost for opening branches. There are 367 identified GPs where necessary infrastructure is already available. However, one of the major issues is availability of internet connectivity in remote locations.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard