**Executive Summary**
This document is an answer provided by the Minister of State in the Ministry of Finance to the Lok Sabha, regarding the availability of banking facilities in rural areas, specifically Muzaffarnagar. The report addresses the procedures and criteria for opening new bank branches, particularly in sugarcane-rich areas. The data presented is current as of October 31, 2025.
**Key Points / Main Content**
* **Banking Outlet Availability:**
* The Government aims to ensure a banking outlet (Bank branch / BC / India Post Payments Bank) within 5 kilometers of all inhabited villages.
* Availability is monitored via the Jan Dhan Darshak (JDD) App.
* As of 31.10.2025, 99.91% of villages are covered within a 5 km radius.
* **RBI Regulations:**
* RBI grants general permission for domestic Scheduled Commercial Banks to open banking outlets without prior approval.
* At least 25% of outlets opened in a financial year must be in unbanked rural centers (population < 10,000).
* **Opening New Outlets:**
* SLBC/UTLBC oversees the rolling out of banking outlets in uncovered areas.
* Banks consider proposals based on RBI instructions, business plans, and commercial viability.
* Surveys are conducted to assess viability.
* **Muzaffarnagar District:**
* All inhabited villages are covered by a Banking Outlet within 5km radius.
* Banking infrastructure as of 31.10.2025:
* Branches: 343
* BC: 3103
* ATM: 214
* IPPB: 227
**Impact Analysis**
**Stakeholder: General Public/Villagers in Rural Areas**
* **Impact**: Increased access to banking services, potentially improving financial inclusion and economic opportunities.
* **Action Required**: Utilize available banking outlets within their communities.
**Stakeholder: Banks (Scheduled Commercial Banks)**
* **Impact**: Must adhere to RBI guidelines regarding the opening of new branches in rural areas, including the 25% requirement for unbanked centers.
* **Action Required**: Consider business plans, conduct surveys, and coordinate with the SLBC/UTLBC when opening new branches.
**Stakeholder: State Level Bankers' Committee (SLBC)/ Union Territory Level Bankers Committee (UTLBC)**
* **Impact**: Responsible for overseeing the expansion of banking outlets in uncovered areas.
* **Action Required**: Consult with State Governments, member banks, and stakeholders; monitor the establishment of new outlets.
Key Entities Referenced
Reserve Bank of India (RBI): Regulates opening of bank branches and banking outlets.
Jan Dhan Darshak (JDD) App: A GIS-based app to monitor the availability of banking outlets.
State Level Bankers' Committee (SLBC): Committee that looks after rolling out of banking outlets in uncovered areas.
Muzaffarnagar: District in Uttar Pradesh which is the subject of the parliamentary question.
Ministry of Finance: The ministry answering the parliamentary question related to banking infrastructure.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1215
ANSWERED ON MONDAY, 08 DECEMBER 2025/ AGRAHAYANA 17, 1947 (SAKA)
Banks in Muzaffarnagar
†1215. SHRI HARENDRA SINGH MALIK:
Will the Minister of FINANCE be pleased to state:
(a) the procedures and necessary criteria for opening a new branch of a Government Bank in the
rural areas of the country;
(b) whether there is any proposal under consideration for opening of new branches of Government
banks in the rural areas of western Uttar Pradesh including Muzaffarnagar district, if so, the details
thereof and if not, the reasons therefor; and
(c) whether the norms for setting up new bank branches in cash crop producing areas like
sugarcane rich areas are different from the general standard and if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (c) The endeavour of the Government is to ensure availability of banking outlet (Bank branch
/ BC / India Post Payments Bank) within 5 kilometres 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 (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.
Reserve Bank of India (RBI) has also granted general permission to domestic Scheduled
Commercial Banks (excluding Regional Rural Banks) to open banking outlets including branches
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).
Moreover, as per the extant RBI guidelines, rolling out of banking outlets in uncovered areas is a
continuous process looked after by the State Level Bankers’ Committee (SLBC)/ Union Territory
Level Bankers Committee (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. The
data for such proposals is not maintained centrally.
As per JDD app, all the inhabited villages of Muzaffarnagar District of Uttar Pradesh (UP) are
covered by a Banking Outlet within 5km radius. Further, the position of Banking infrastructure in
Muzaffarnagar District of UP, as on 31.10.2025, is as under:
Banking Infrastructure in Muzaffarnagar District
District Branch BC ATM IPPB
Muzaffarnagar 343 3103 214 227
Source: JDD App
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