MP govt proposes to open branches for private banks in 'shadow' areas

To encourage private banks to participate in 'Jan-Dhan Yojana' and provide easier banking access to people, Madhya Pradesh government has agreed to open branches for banks provided they offer their services in 'shadow' areas.

Banks, which will monitor financial inclusion and manage 'Jan-Dhan Yojana' accounts, will be accorded priority. The fund will be provided by state government's rural development and panchayat department.

Shadow areas are those which fall in five kilometreS radius of a bank branch. There are 14,767 shadow villages served mostly by public sector banks through 2,415 ultra thin branches and require a proper bank branch within a radius of five kilometres.

"We are extending support to bankers on demand in form of construction of fully equipped branches in rural areas, particularly shadow areas, from where they can monitor 'Jan-Dhan Yojana'. We have funds for bankers to an extent of Rs 10 lakh for each branch. Our panchayats have the approved the design for such branches. The fund will go to the village panchayat, who will construct the branch before handing it over to the bank," said Aruna Sharma, additional chief secretary, rural development and panchayat department.

"At present any banker can use our panchayat infrastructure till the branch is set up," she added. As of now, the state has funds for 100 such branches. Funds for 33 of them has already been sanctioned.

Sharma, who devised the concept of 'Samagra' to make Direct Benefit Transfer (DBT) smoother, said, "Our priority is shadow areas where bankers offer their services through 'business correspondent' or 'ultra thin branches'. Only ICICI, and to a certain extent, Axis Bank offer their services in rural areas and are participants in 'Jan-Dhan Yojana'," she stated.

Under Jan-Dhan yojana, the state government has created its own unique number, known as 'Samagra', for its citizens.

Punjab National Bank (PNB) has adopted Sikri village in Datia district for pilot and has covered the entire village under 'Jan-Dhan Yojana', making it the first village in the country to have cent percent enrollment.

"Account holders, who will join banks through 'Jan-Dhan Yojana' and have RuPay debit card, will be given 'Samagra' number on the debit card and those who already have bank account with other debit cards will be offered separate 'Samagra' slip," she said.

Samagra identity number provides details of all family members unlike 'Aadhar' card number, which is issued to an individual and does not provide details of family members. "Samagra will help us offering various government sponsored scheme benefits to account holders without going into micro details," she said.