**Executive Summary**
This document answers Lok Sabha Unstarred Question No. 1219, addressed on December 8, 2025, regarding bank branches in the tribal majority areas of Raipuria and Madrani (Jhabua district) and Kakrana (Alirajpur district) of Madhya Pradesh. It outlines the RBI's guidelines and the government's initiatives to ensure banking access in these areas. The current status of banking infrastructure is detailed as of November 30, 2025.
**Key Points / Main Content**
* **RBI Guidelines on Banking Outlets:**
* Rolling out banking outlets in uncovered areas is an ongoing process managed by State/ Union Territory Level Bankers' Committees (SLBC/UTLBC).
* Banks consider proposals based on RBI instructions, business plans, and commercial viability.
* Banks conduct surveys to assess the viability of opening outlets.
* **Revised Branch Authorization Policy:**
* The term "Branch" has been substituted by "Banking Outlet (BO)," including physical branches and Business Correspondent (BC) outlets.
* This enables banks to expand their network in remote rural areas cost-effectively.
* **Opening New Banking Outlets:**
* Scheduled Commercial Banks (excluding Regional Rural Banks) can open banking outlets without prior RBI approval.
* At least 25% of outlets opened during a financial year must be in unbanked rural centers (population less than 10,000).
* **Government Initiatives for Banking Access:**
* The government aims to ensure banking outlet availability within 5 km of all inhabited villages.
* Availability is monitored via the Jan Dhan Darshak Application (JDD App).
* As of October 31, 2025, 99.91% of villages in the country are covered within a 5 km radius.
* **Banking Infrastructure in Jhabua and Alirajpur Districts (as of November 30, 2025):**
* Jhabua: 91 branches, 2963 BCs, 52 ATMs, and 116 IPPBs.
* Alirajpur: 52 branches, 1610 BCs, 31 ATMs, and 101 IPPBs.
**Impact Analysis**
**Stakeholder: Residents of Raipuria, Madrani (Jhabua District) and Kakrana (Alirajpur District)**
* **Impact:** Improved access to banking services, government schemes, and financial inclusion through the availability of banking outlets (branches, BCs, IPPBs).
* **Action Required:** Utilize available banking outlets for financial transactions and engage with government schemes.
**Stakeholder: Scheduled Commercial Banks (excluding Regional Rural Banks)**
* **Impact:** Opportunity to expand banking networks in unbanked areas with relaxed RBI approval norms, but with the condition of opening 25% of outlets in unbanked rural centers.
* **Action Required:** Assess viability of opening new banking outlets, focusing on unbanked rural centers, and utilize BCs to expand reach.
**Stakeholder: RBI**
* **Impact:** Maintaining regulatory oversight of banking outlet expansion while promoting financial inclusion.
* **Action Required:** Continue monitoring banking outlet expansion and ensure compliance with guidelines.
**Stakeholder: State/ Union Territory Level Bankers' Committees (SLBC/UTLBC)**
* **Impact:** Coordination with banks and state governments to facilitate the expansion of banking outlets.
* **Action Required:** Continue to oversee and support banking outlet rollout in coordination with the RBI and concerned state governments.
**Stakeholder: The Government**
* **Impact:** Achievement of increased financial inclusion and improved access to government schemes.
* **Action Required:** Monitor the progress of banking outlet expansion via the JDD App and continue to facilitate coordination between stakeholders.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator whose guidelines dictate the establishment of banking outlets.
Branch Authorization Policy: RBI policy rationalizing the definition of a 'branch' to include Banking Outlets (BO) such as physical branches and Business Correspondent (BC) outlets.
Madhya Pradesh: State where the bank branches are being discussed.
Jan Dhan Darshak Application (JDD App): Geographic Information System (GIS) based App used to monitor the availability of banking outlets.
State/ Union Territory Level Bankers' Committee (SLBC/UTLBC): Committee responsible for overseeing the rolling out of banking outlets in uncovered areas.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1219
ANSWERED ON Monday, December 8, 2025/Agrahayana 17, 1947 (Saka)
Bank Branches in Madhya Pradesh
†1219. SMT. ANITA NAGARSINGH CHOUHAN:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government is aware of the urgent need for bank branches in the tribal majority areas
of Raipuria and Madrani (Jhabua district) and Kakrana (Alirajpur district) of Madhya Pradesh;
(b) if so, whether the Government has conducted any survey or prepared any proposal for establishing
branches of nationalised banks in these areas, if so, the details thereof;
(c) if not, whether the Government is likely to consider establishing new bank branches in these
regions in view of their geographical inaccessibility, growing population and the need to ensure
access to various Government schemes, if so, the details thereof; and
(d) the steps taken/proposed to be taken by the Government so far for establishing bank branches in
the aforesaid areas?
ANSWER
The Minister of State in the Ministry of Finance
(SHRI PANKAJ CHAUDHARY)
(a to d) As per the extant Reserve Bank of India (RBI) guidelines, rolling out of banking outlets in
uncovered areas is a continuous process looked after by the State/ Union Territory Level Bankers’
Committee (SLBC/UTLBC), in consultation with the concerned State Government, member banks and
other stakeholders. Banks, inter-alia, consider proposals for opening banking outlets in the light of RBI’s
instructions, their business plans and their commercial viability. To further assess the viability for
opening a banking outlet, banks carry out survey as required.
In terms of the revised guidelines issued by RBI vide circular dated May 18, 2017 on ‘Rationalization of
Branch Authorization Policy’ the term “Branch” has been substituted by “Banking Outlet (BO)” which
includes both physical brick and mortar branches and Business Correspondent (BC) outlets, to enable
banks in expanding their network even in remote rural areas in a cost-effective manner for hassle free
services to customers.
RBI has granted general permission to domestic Scheduled Commercial Banks (excluding Regional
Rural Banks) to open banking outlets including branch at any place in the country, without seeking prior
approval of RBI in each case, subject to at least 25 percent of the total number of banking outlets opened
during a financial year being in unbanked rural centres i.e. centres having population less than 10,000
(Tier 5 and Tier 6 centres).Further, the endeavor of the Government is to ensure availability of banking outlet (Bank branch/ BC
/India Post Payments Bank (IPPB)) within 5 kilometres (km) of all inhabited villages in the country.
Availability of banking outlets is monitored by a Geographic Information System (GIS) based App.,
namely, Jan Dhan Darshak Application (JDD App). Based on the data uploaded by Banks on the JDD
App, as on 31.10.2025, 99.91% villages in the country are covered with banking outlets (Bank Branch/
BC / IPPB) within a radius of 5 km.
As per the JDD App, the villages namely Raipuria and Madrani in Jhabua District and Kakrana village
in Alirajpur District of Madhya Pradesh are covered by banking outlets within 5 km radius.
Details of Banking Infrastructure in Jhabua and Alirajpur District of Madhya Pradesh, as on 30.11.2025,
is as under:
State District Branches BC ATM IPPB
Madhya Pradesh Jhabua 91 2963 52 116
Madhya Pradesh Alirajpur 52 1610 31 101
Source: JDD App
******