Banks in Andhra Pradesh are expected to complete the appointment of business correspondents to over 6,000 villages with a population of 2,000 and more where no bank branch exists, by the end of this calendar year, a state finance department official said here on Tuesday.
The Reserve Bank of India regional director on Tuesday reviewed the progress of the financial inclusion initiatives in the state as the banking regulator had mandated the banks across the country to appoint business correspondents in those villages with a population of 2,000 and more in the first phase by March next year.
So far, the banks have completed the appointment of business correspondents in 60 per cent of such villages in the state and informed the RBI regional head that they would be able to cover the rest of the villages by December this year.
These business correspondents will act as an extension of the nearest branch of their respective banks to offer banking services, including opening an account for people at their doorsteps. Opening of savings accounts for all the families in rural households is also necessary because the financial benefits under various social welfare schemes will be directly transferred to the accounts of eligible beneficiaries in future, the official said.
The banking connectivity to the rural habitations with less than 2,000 people will be taken up after the completion of the present round.