Srinagar, Jul 20: The Central Government on Monday informed Parliament that 91 per cent of inhabited villages in the Union Territory of Ladakh are covered by banking outlets, while banking services in remote and inaccessible areas are being strengthened through Business Correspondents (BCs), Aadhaar Enabled Payment System (AePS) and India Post Payments Bank (IPPB).
Replying to an unstarred question by MP Mohmad Haneefa in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the government ensures that every inhabited village has access to a banking outlet—either a bank branch, IPPB or Business Correspondent—within a radius of five kilometres. The availability of banking services is monitored through the GIS-based Jan Dhan Darshak (JDD) application.
The Minister informed the House that Ladakh presently has 145 bank branches, 105 Business Correspondents (BCs), 127 India Post Payments Bank (IPPB) outlets and 118 ATMs, significantly improving financial access across the Union Territory.
The government further stated that the Reserve Bank of India (RBI) allows Scheduled Commercial Banks, except Regional Rural Banks, to open branches anywhere in the country without prior approval, provided 25 per cent of new branches are established in unbanked rural areas.
Expansion of banking outlets in uncovered areas is a continuous process carried out by the State Level Bankers’ Committee (SLBC) or Union Territory Level Bankers Committee (UTLBC) in consultation with the respective governments and other stakeholders.
The Centre also said banks assess proposals for new banking outlets based on RBI guidelines, business plans and commercial viability, while banking services in remote and difficult areas are being facilitated through alternate delivery channels such as BCs, Aadhaar Enabled Payment System and India Post Payments Bank wherever feasible to improve access to banking and Aadhaar-enabled financial services—(KNO)
