Mumbai, Aug 8 (KNN) In order to speed up branch expansion in unbanked rural centres the Reserve bank of India (RBI) has asked all regional rural banks to prioritise the opening of new centres.

“In order to take financial inclusion to the next stage of providing universal coverage and facilitating Electronic Benefit Transfer (EBT), banks have been advised to facilitate speedier branch expansion in unbanked rural centres,” said RBI in a communication to heads of all regional rural banks.  

With the objective of increasing banking penetration and financial inclusion rapidly banks were advised to allocate at least 25 per cent of total number of branches proposed to be opened in unbanked rural centres.

An unbanked rural centre would mean a centre that does not have a brick and mortar structure of any scheduled commercial bank for customer based banking transactions.

Meanwhile, credit will be given for branches opened in unbanked rural centres in excess of 25 per cent in a year which will be carried forward to the subsequent years.
Branch expansion in rural areas is essential to address the existing asymmetries in achieving financial inclusion. (KNN/GUNJ)