Plan to cover all unbanked GPs in Odisha prepared

Banks seek five years to open branches

For providing banking services in all the 4597 unbanked gram panchayats (GPs) of the state, the state level banker's committee (SLBC) has drawn up an action plan for banks operating in the state.

 

In the last SLBC meeting held in May, UN Behera, additional chief secretary (finance) has directed to complete the branch opening task in the unbanked GPS within three years i.e by March 2017.

 

SLBC has allotted the identified 4597 unbanked GPs, among the banks having operations in the state to set up brick and mortar branches.

 

Ganjam district tops the list of unbanked GPs with 349 panchayats having no banks followed by Cuttack (242 GPs), Kalahandi (228 GPs), Keonjhar (220 GPs), Jajpur (218 GPs) etc. Deogarh has 43 unbanked GPs, least among the 30 districts.

 

Among the commercial banks, country's largest bank State Bank of India (SBI) is allotted 576 unbanked GPs for opening of branches, Odisha Gramya Bank and Utkal Grameen Bank are allotted to open branches in 331 and 357 GPs respectively. Among the private sector banks, ICICI bank is allotted 194 GPs for opening of branches followed by Axis Bank ( 189 GPs), HDFC (178 GPs) etc. Newly formed Bharatiya Mahila Bank has been assigned to open branches in 20 unbanked GPs.

 

However, banks have expressed their inability to complete the task within three years as suggested by the state government and has sought more time to cover the unbanked GPs.

 

"Keeping in view the existing infrastructure (connectivity, power supply, communication) and man power and viability aspect, it was viewed by all banks in the meeting dated June 24, 2014, that would be an herculean task to open huge number of branches in the unbanked GPs within three years. Hence, it was unanimously decided to prepare the branch opening plan for the period 2014-15 to 2018-19 covering five years instead of three years as suggested by the state government", SK Nandi, Convenor, SLBC (Odisha) has written to Behera.

 

SLBC has sought the concurrence of the state government for extending the time period to five years for covering the unbanked GPs of the state.

 

For getting all the GPs banked, the state government has assured that banks coming forward to open branches in unbanked GPs will be provided space in panchayat buildings and Rajiv Gandhi Seva Kendras free of cost for five years.

 

"The commercial banks opening their branches in unbanked GPs will be given access to government funds meant for that GP," Behera, had said in the SLBC meeting.

 

As per the existing road map of Reserve Bank of India - Provision of Banking Services in every village with polulation below 2000 out of 45778 identified villages, 2361 number of brick and mortar branches are to be opened by March, 2015.