Banking operations in for big push in Bihar

[parijataka]

Good luck Bihar! Now for some industry to develop after infrastructure is in place and Bihar can be one of the top states.

Banking operations in for big push in Bihar

PATNA: Bihar may soon shed the tag of being "one of the most under-banked states" in the country with the bankers operating in the state deciding to open 16,238 new units to facilitate expansion of banking activities. This decision was taken at the State Level Bankers' Committee (SLBC) meeting held here on Friday. The bankers shared the state government's concern on low spread of banking activities and the need for financial inclusion of every family in a bid to step up developmental activities.

The 16,238 new units to be added to the existing 4,882 brick-and-mortar branches and 2,145 ATMs of various banks include opening of 419 new brick-and-mortar branches of various banks, 1,866 new ATMs, 1,695 ultra-small branches (USBs) covering all the villages having a population of more than 5,000 people besides 12,258 banking units in equal number of villages, each with a population of more than 1,600 people.

"All the 1,695 USBs will be opened in the next three months. Bankers have agreed to do it. Besides, 12,258 villages would also be saturated with banking facility under business correspondent model (BCM) during the same period," said deputy CM cum state's finance minister Sushil Kumar Modi, who reviewed the performance of the bankers at the SLBC meeting.

As he put it before the bankers, Bihar was the "most under-banked state" in the country, and even the people of the northeastern states were more banked than Bihar. Till now, Bihar with over 10 crore population, had one brick-and-mortar branch for around 25,000 population, while the national average in this regard was one bank branch for every 14,000 population. "The idea behind opening 16,238 new units for banking activities was to saturate people through financial inclusion of at least one member from every family in the state," he said.

According to him, every USB would have a banking official, armed with a laptop and other essential accessories, present at every village with over 5,000 population six days a week, and would operate from the government or panchayat building there, or alternatively, from a rented private house. Similarly, a banking correspondent selected by various banks would operate in every village with a population of over 1,600 people (but less than 5,000 people).

Moreover, a banking official would visit every such village once a week to ensure committed efficient performance of the business correspondent placed in that village. Modi said the bankers had already appointed/selected 9,206 banking correspondents for an equal number of such villages, and would deploy the remaining 3,052 of them in the next three months.

"It is for the first time in the banking history of the state that bankers have been reaching out to people on such a scale," Modi said, adding that even the 15 Left Wing Extremist-affected districts would get a network of banking facilities.

State Bank of India (SBI) chief general manager (CGM) Jeevan Das Narayan said banking activities would also be expanded in the 15 districts in a focused manner, while Nalanda and Gaya districts would be saturated with banking activities through self-help groups (SHGs).

Modi said Kisan Credit Cards (KCCs) would be distributed at special camps to be held in every block on two days - September 9 and October 10 - and accounts of urban poor, vendors and hawkers would also be opened.