Executive Summary:
The document addresses a parliamentary inquiry regarding the availability of banking infrastructure in rural areas of India, specifically concerning the opening of nationalized banks. It provides data on the coverage of banking outlets within a 5-kilometer radius of inhabited villages and details the number of bank branches and ATMs in Maharashtra and Tamil Nadu as of June 30, 2025. It also discusses the role of India Post Payments Bank (IPPB) in bridging the digital divide in these areas.
Key Points / Main Content:
* **Government Objective:** To ensure a banking outlet (Bank branch, Business Correspondent, or India Post Payments Bank) is within 5 kilometers of all inhabited villages in the country.
* **Monitoring Mechanism:** Availability of banking outlets is monitored via the Jan Dhan Darshak (JDD) App, a Geographic Information System (GIS) based application.
* **Coverage Status:** As per data uploaded by banks on the JDD App, 99.91% (600,803 out of 601,328) of inhabited villages are covered with banking outlets within a 5 km radius.
* **State-wise Banking Infrastructure (as of June 30, 2025):**
* Maharashtra: 7,593 bank branches and 11,604 ATMs.
* Tamil Nadu: 6,397 bank branches and 13,374 ATMs.
* **Dharashiv District (Maharashtra):**
* No recent proposals for opening new bank branches in 60 villages received by SLBC, Maharashtra.
* A request for opening branches in 41 locations was received in September 2023, but all locations were already covered by banking outlets.
* **Dharapuram Assembly Constituency (Tamil Nadu):** No new Public Sector Bank (PSB) branches opened in the last two years.
* **Data Maintenance:** Data for proposals for opening new bank branches is not centrally maintained.
* **India Post Payments Bank (IPPB):**
* Provides banking services through post office networks in Tamil Nadu (11,855 post offices) and Maharashtra (14,020 post offices) as banking access points.
* Facilitates customers in rural areas with doorstep services to bridge the digital divide.
Impact Analysis:
Stakeholder: Government
Impact: Needs to continue monitoring banking outlet coverage using the JDD App and ensure all inhabited villages have access within a 5-kilometer radius.
Action Required: Address the remaining 0.09% of uncovered villages and improve data maintenance processes for bank branch proposals.
Stakeholder: Banks (Public Sector Banks)
Impact: Required to upload data on banking outlets to the JDD App. May face pressure to expand services in uncovered areas if gaps are identified.
Action Required: Ensure accurate and timely data uploads to the JDD App. Evaluate the feasibility of expanding services in underserved areas.
Stakeholder: India Post Payments Bank (IPPB)
Impact: Plays a crucial role in providing banking services in rural areas, especially in bridging the digital divide.
Action Required: Continue to expand doorstep services and leverage the post office network to reach underserved populations.
Stakeholder: State Level Banking Committee (SLBC), Maharashtra
Impact: Responsible for assessing proposals for new bank branches and ensuring adequate banking coverage in the state.
Action Required: Review the existing banking coverage in Dharashiv District and explore options for improving access in areas where needed.
Stakeholder: Rural Population
Impact: Aims to improve access to banking services and financial inclusion.
Action Required: Utilize available banking outlets, including IPPB services, to access financial services and participate in government schemes.
Key Entities Referenced
Tamil Nadu: A state in southern India, specifically mentioned in relation to the availability of public sector bank branches and ATMs in rural areas.
Maharashtra: A state in western India, specifically mentioned in relation to the availability of public sector bank branches and ATMs in rural areas.
Dharashiv District: A district in Maharashtra, mentioned concerning proposals to open new bank branches in its villages.
India Post Payments Bank (IPPB): A payments bank in India, mentioned in the context of providing banking services in rural areas and bridging the digital divide.
Jan Dhan Darshak (JDD) App: A Geographic Information System (GIS) based application used to monitor the availability of banking outlets.
Pradhan Mantri Jan Dhan Yojana (PMJDY): A National Mission on Financial Inclusion to ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner
Direct Benefit Transfer (DBT): A mechanism to transfer subsidies directly to beneficiaries.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): A government-backed life insurance scheme in India.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 2381
ANSWERED ON MONDAY, AUGUST 4, 2025/SRAVANA 13, 1947 (SAKA)
NORMS/GUIDELINES FOR OPENING OF NATIONALISED BANKS IN RURAL AREAS
2381. Shri K E Prakash:
Thiru D M Kathir Anand:
Shri Omprakash Bhupalsinh Alias Pavan Rajenimbalkar:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has mapped the availability of public sector bank branches and ATMs in the rural belts
of the country including Tamil Nadu and Maharashtra especially Anaicut, K.V. Kuppam, Vaniyambadi, Ambur
and Gudiyatham blocks in Vellore of Tamil Nadu;
(b) if so, whether the Government has any prescribed norms or guidelines regarding the distance or population
thresholds for the opening of bank branches and if so, the details thereof;
(c) the number of new PSBs opened in the Dharapuram Assembly Constituency in Tamil Nadu during the last two
years along with the names of the bank branches opened under these norms;
(d) the number of proposals received by the Government from Maharashtra to open new bank branches in 60 villages
of Dharashiv district along with the number of proposals approved;
(e) whether the Government acknowledges a severe gap in banking infrastructure leading to exclusion from Jan Dhan,
DBT and PMJJBY schemes and if so, the corrective steps taken by the Government in this regard; and
(f) whether the Government has any plans to deploy India Post Payment Banks or Mobile Banking vans in these areas
to bridge the digital divide and if so, the details thereof along with the timeline proposed and budgetary allocation
made in this regard?
Answer
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (f) The endeavor of the Government is to ensure availability of banking outlet (Bank branch/Business
Correspondent/ 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, out of total 6,01,328 inhabited villages in
the country, 6,00,803 (99.91%) villages are covered with banking outlets (Bank Branch / BC / IPPB) within a radius
of 5 kms. Position of Bank branches and ATMs for the Maharashtra & Tamil Nadu as mapped on JDD App as on
30.06.2025 is as under:
State Bank Branches ATMs
Maharashtra 7,593 11,604
Tamil Nadu 6,397 13,374
SLBC, Maharashtra has apprised that no such proposal of opening of new bank branch in 60 villages of Dharashiv
District has recently been received. However, in September 2023 a request for opening of bank branches in 41 locations
of Dharashiv District was received from the District Collector, Dharashiv. Upon survey of the 41 locations, it was
found that all the locations were already covered with one or more banking outlet.
Further, no new branch of Public Sector Bank (PSB) has been opened in the Dharapuram Assembly Constituency in
last two years. Data for proposals of opening new bank branches is not centrally maintained.
Further, Department of Posts (DoP) has apprised that in Tamil Nadu and Maharashtra, India Post Payments Bank
(IPPB) provides banking services through the DoP’s network of 11,855 & 14,020 post offices as Banking access points,
respectively. IPPB is facilitating customers in rural areas by providing doorstep services to bridge the digital divide.
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