Open more branches in rural areas: RBI to banks

Underlining the need for improving banking in rural areas, the Reserve Bank of India (RBI) today asked banks to open more branches in the villages.

"There should be greater money supply to rural people so that they can avail the services in the priority sectors," RBI Deputy Governor KC Chakraborty said after a State Level Bankers Committee meeting here.

Pointing to Meghalaya where the cash deposit ratio is as low as 40 per cent, Meghalaya chief secretary Ranjan Chatterjee said, banks, particularly the private ones, are reluctant to open branches in rural areas of the state.

"During the meeting, we tried to dispel the notions of the banks and work out a mechanism to provide banking facilities to the people in the rural areas," Chatterjee said.

 

The chief secretary said Meghalaya government offered accommodation to the banks and assured security in rural areas.

Chatterjee informed that Punjab National Bank, State Bank of India and UBI have said to open branch in rural areas of Garo Hills and West Khasi Hill districts of the state.