BHUBANESWAR: As the financial inclusion programme is moving at a snail’s pace in the State with banks slow in setting up brick and mortar branches in rural areas, Odisha Government on Saturday requested the regional heads of commercial banks to fulfil their commitments by extending banking facilities in unbanked panchayats.“Banking facilities will be made available in 571 unbanked panchayats of the State and the State Bank of India (SBI) has been asked to open at least one of its branch in the interior pockets of the Maoist-affected Malkangiri district,” Finance Minister Niranjan Pujari said.
As internet connectivity is one of the biggest challenges facing the banks in extending facility in rural areas, the Finance Minister urged the Nabard and the State Level Bankers Committee (SLBC) to resolve the issue through VSAT.Though the State Government ad prepared a five-year road map (2014-15 to 2018-19) to open banks in all panchayats in a phased manner, this has not been materialised so far mainly due to lack of internet facilities.
Pujari said the committee constituted in consultation with the SLBC for opening of brick and mortar branches in unbanked panchayats has submitted its report. The banking heads here have been requested to open the new bank branches in GPs assigned to them without further delay.Addressing the 157th State Level Bankers’ Committee meeting here, Pujari said increasing coverage of banking facilities in rural areas assumes significance as the Centre and the State have extended the direct benefit transfer (DBT) to the beneficiaries under different schemes including MGNREGS, cooking gas subsidy and paddy procurement automation system.
While the banks have achieved their target of financing micro, small and medium enterprises (MSME) sector, they have failed in their target for allied agricultural activities like fisheries and dairy.He underscored the need to finance more to students in rural areas and educate the small depositors for saving their money in commercial banks.
With the State witnessing rapid growth in infrastructure development in the last couple of years, Development Commissioner Suresh Chandra Mohapatra urged the banks to open more branches in under-developed areas and aspirational districts to improve economic activities. Principal Secretary of Finance Ashok Meena advised the banks to further improve their priority sector lending particularly to agriculture sector.
No banking coverage
The State has 571 unbanked panchayats
Internet connectivity is the major hurdle in extending facility in rural areas
Govt has asked Nabard and SLBC to resolve the issue through VSAT
Govt had prepared a five-year road map to open banks in all panchayats in a phased manner