4373 unbanked Gram Panchayats in Odisha to get mini banks
4373 unbanked Gram Panchayats in Odisha to get mini banks with the State budgetary support of around Rs. 500 crore.
Bhubaneswar: The State Cabinet has approved 4373 unbanked Gram Panchayats in Odisha to get mini banks with the State budgetary support of around Rs. 500 crore.
The scheme shall enumerate to open “CSP Plus” Banking Outlet in coordination with six Public Sector Banks, namely State Bank of India, Punjab National Bank, UCO Bank, Union Bank of India, Bank of Baroda & Bank of India in 4373 unbanked Gram Panchayats of the State with budgetary support of around Rs. 500 crore.
Financial inclusion is a high priority agenda of the Government. For the state of Odisha, Financial inclusion is still a critical challenge since banking penetration in the state is quite low. Out of 6798 GPs, around 65% of GPs (4373 GPs) do not have brick and mortar branches. Since banking is an essential services for financial inclusion, every GP of the State needs to be provided with a brick and mortar branch for uninterrupted banking services.
However, the progress in terms of setting up brick and mortar branches in unbanked GPs by banks is very slow and negligible. Therefore, Government of Odisha has come forward with an ambitious target of providing banking services to every GP through CSP Plus banking outlets.
The scheme will be implemented in a phased manner to cover all 4373 unbanked GPs in the State for providing banking services through CSP Plus banking outlets with in the current financial year 2023-24. Government of Odisha will provide rent free banking space for 5 years. In addition to this, Government of Odisha will also bear onetime expenses for Fixed Cost & Recurring expenses for a period of three years.
The scheme will enhance the coverage of financial inclusion in the State in a big way. People residing in all Unbanked Gram Panchayats of the State will have easy access to all kinds of banking services free of cost.
Senior citizens, differently abled people and pregnant women will get door step banking services and avail the Direct Benefit Transfer of the Government in a timely manner.
