Only 40,000 villages in India have bank branches: K C Chakrabarty

The country has a total of 600,000 villages

Stressing the need for penetration of banks across the country, RBI Deputy Governor K C Chakrabarty today said only 40,000 out of 600,000 villages have bank branches.

"Banks are important financial intermediary, but our problem is that banks access is not there, today out of 600,000 villages only 40,000 villages have bank branch;.... banks penetration is very important," he said at a financial inclusion outreach programme organised by Vijaya Bank at Adichunchanagiri near Mandya.

He said "everybody must have a bank account, in fact many of the programmes of the government of India speaks about all benefits and facilities to be available for general public with the help of a bank account ,for this to happen banks penetration is very important."

Stating that banks are important institutions and can change the lives of the people, he said: "Banks are the institutions of social and financial revolution, and they can create many new things by involving people in the society."

He said basically people go to the banks either to save or to borrow money and also to transfer money, all three things can be done very efficiently by the banks and all three functions are very important.

Pointing out that the banks are also today centres for many other financial services like micro insurance programme, the Deputy Governor said "financial institutions can play a very important role, it requires a combined involvement of local people and local institutions."

As a step forward under financial inclusion, in Mandya district, Vijaya Bank today opened 10 financial inclusion branches by upgrading the ultra small branches. It also adopted 10 girl children with an assurance to meet their educational expenses subject to certain annual cap up to the level of graduation.