Banks have been asked to finalise their next three-year Financial Inclusion Plan for the 2013-16 period, according to Deepali Pant Joshi, Executive Director, Reserve Bank of India.
Broadly, the plan includes self-set targets for opening rural brick and mortar branches, employing Business Correspondents , covering unbanked villages through branches, Business Correspondents and other modes; and opening no-frills accounts to cater to the financially excluded segments. Banks engage the services of Business Correspondents(such as non-government organisations/ micro finance institutions, registered NBFCs not accepting public deposits and Post Offices) to ensure greater financial inclusion and increase the outreach of the banking sector.
The RBI had first asked all public and private sector banks to submit a board-approved, three-year FIP in 2010.
Joshi said, up to December 31, 2012, banking connectivity has been extended to 2,11,234 villages from 67,694 villages as at March-end 2010.
Further, 5,694 rural branches have been opened during the period.The number of Business Correspondents has increased from 34,532 (in March 2010) to 1,52,328 (December-end 2012). The number of basic savings bank deposit accounts have increased from 7.34 crore (with total deposit amount of Rs 5,502 crore) to 17.14 crore (with total deposit amount of Rs 17,008 crore).
The number of Kisan Credit Cards (KCCs) increased from 2.43 crore (with outstanding loans of Rs 1,24,007 crore) as at March-end 2010 to 3.17 crore (Rs 2,49,140 crore) as at December-end 2012.