RBI to develop unbanked villages as model villages

Having already adopted 75 unbanked villages in the country to be developed as ‘model villages’, the Reserve Bank of India (RBI) is planning to adopt as many villages as possible. RBI has already told banks they must provide basic banking services in all the villages with a population of 2,000 and more by March 2012. This was disclosed by G Gopalkrishna, executive director, RBI who was in the city.

He stressed the need to use technology like mobile technology, ICT model besides banking correspondents and brick and mortar model in reaching out to ruralites. “Still 50 per cent of the total population is not covered by banks. There are 32,000 bank branches across the country, while there are about 600,000 villages in the country, there is still a long way to go. Only by leveraging technology can we bridge this gap. We should ensure every person has a bank account, so that he can avail of various financial services offered by the government and other agencies,” he added.

On being asked about the adoption of villages, he added, “As part of the Platinum Jubilee year celebration 2009-10, one of the initiatives of the Bank was the adoption of some unbanked villages to be developed as ‘model villages’ across the country.” These villages are meant to be equipped with model banking infrastructure and quality banking services to the common man. In Chandigarh, Kishangarh is one such village. Punjab National Bank (PNB), the lead bank in Chandigarh will provide the banking services through the ICT enabled BC (business correspondent) model banking in Kishangarh.

A survey of the village has been completed jointly by RBI and PNB to ensure there is 100 per cent financial inclusion of the village. All those households that were disconnected from the banking services have been facilitated for the basic connect by the issue of biometric cards. This connect with the banking system should go a long way in inculcating the saving habit, long term healthy bank-customer relationship for any credit needs remittance facilities and so on.

The outreach events also comprise the drive for the spread of financial literacy and delineates basic banking concepts and facilities, the RBI’s role in people’s lives, advantages of a healthy credit culture, the possibilities of empowering the small-scale entrepreneur through the self-help group medium and grievances redressal mechanism.