RBI has allowed other banks and lenders besides the designated ones to operate in villages with a population of over 2,000. Under its ambitious financial inclusion programme, the central bank has designated various banks to provide basic banking facilities in the villages. Speaking to AIR correspondent , RBI spokesperson Alpana Killawala said as envisaged by the government, banks have to open their branches in the un- banked villages with a population of over 2000 by March next year. These villages have already been identified for financial inclusion. The spokesperson clarified that now any other bank can also operate in these areas and extend banking services based on the available business potential. AIR correspondent reports that out of 73 thousand villages identified, about 29 thousand have been covered till March 31 this year as financial inclusion is considered a key determinant of sustainable and inclusive growth, essential for building an equitable society.
News On AIR | May 31, 2011 12:21 PM
RBI allows other banks, lenders besides designated ones to operate in villages