Financial Inclusion Plan – Maharashtra State

Introduction :

In our country a large section of the population is excluded from formal banking and there is need to bring them into banking fold for equitable growth. Hence, the RBI in collaboration with the Government of India has introduced the concept of Financial Inclusion to be implemented through banks which envisages delivery of banking services at an affordable cost to the vast sections of disadvantaged and low income groups so as to ensure inclusive growth.

The broader concept of Financial Inclusion to be followed after completion of the first phase i.e. opening of No-frill accounts involves further steps to ensure the continuance of these newly included families in the financial system by way of extending various banking services like providing of over draft facility, issuance of GCC / KCC, providing micro-insurance etc. for inclusive growth.

As per decision taken by SLBC, it was started in two phases in the State of Maharashtra covering 20 districts followed by 12 districts in the later stage and the progress was reviewed through respective BLBC / DCC including SLBC from time to time. The 100% FI was achieved firstly in the Jalna District followed by 11 districts namely Raigad, Chandrapur, Nandurbar, Amravati, Satara, Solapur, Yevatmal, Washim, Sindhudurg, Wardha & Gadchiroli  districts as per the reports available with SLBC. As such 28,22,175 number of no-frill accounts of uncovered families have been opened by all concerned banks in the State.

The performance in implementation of Financial Inclusion in 20 districts of the first phase was 93.25%, and of 12 districts of the second phase as of May 2010 was 40.96%. As such the overall performance for 33 districts in Maharashtra state was 74.36%.

RBI on the basis of recommendations of High Level Committee on Lead Bank Scheme directed lead banks to draw a road map by March 2010 to provide banking services through a banking outlet in every village having a population of over 2000, by March 2011 and further stated that such banking services may not necessarily be through a brick and mortar branch but can be provided through any of the various forms of ICT-based models with the help of hand held machines, smart card & Business Correspondents.

In view of the above, SLBC has taken various steps/initiatives for preparation of Financial Inclusion Plan (FIP) for providing banking services in every village having a population of over 2000 as below:

All Lead District Managers  were requested to constitute a Sub-Committee of the District Consultative Committee to draw a roadmap for Financial Inclusion.
All LDMs in the Maharashtra State have provided bank wise allocated list of identified unbanked villages having population above 2000 to be covered under FIP by respective banks and is consolidated at SLBC level.

As per census 2001, there are 7312 villages in the state having population above 2000, of which 4348 villages have been identified as unbanked in the state subject to approval of Sub-Committee of respective DCCs.

The Bank-wise summary of number of identified villages having population above 2000 for providing banking services are as under:

A.] Public Sector Banks  

B.] Regional Rural Banks  

C.] Private Sector Banks  

D.] The district wise summary of number of identified unbanked villages is given as below:  

Role of State Govt. in F.I. Process

1. High Level Committee on Lead Banks in its final recommendations have also emphasized the importance of role of State Governments to be played in FI process as below:

1. In extending necessary support to achieve the objective of FI ranging from ensuring conducive law and order situation, water supply and irrigation facilities, road and digital connectivity, developing proper land records, to assisting in the identification process, publicity drives, recovery etc.
2. In centers where bank branches are required as per public policy for general banking, currency, forex and government business, but banks are constrained to open the branches due to lack of infrastructure, absence of viability and security concerns, State Governments will need to extend support by providing premises, security etc.  
3. Since State Governments are also keen to disburse MG NREGA and social security funds through bank accounts, banks should explore partnership with them and State Governments should also be able to leverage on the benefits of undertaking government business accruing to banks to incentivize their involvement in Government sponsored schemes and Programmes. 

Providing Banking services through Banking outlet in every village having population above 2000

It has been proposed to providing Banking services to identified villages by respective banks by opening branches / Satellite banking / mobile banking / ICT based Business Correspondent model over a period of 3 years starting from 2010 –11.

The list of identified villages having population above 2000 alloted to various banks district wise & bank wise is attached as Annexure I & Annexure  II