RBI wants banking services to reach remote villages

The Reserve Bank of India wants benefits of banking to reach remote villages in the country.

Accordingly, in Andhra Pradesh, it has set a target to reach 6,640 uncovered villages before March 31, according to Mr A. Sambasiva Rao, Regional Director, RBI.

Addressing a meeting in connection with his visit to Financial Literacy and Credit Counselling centre here, Mr Rao said that about 89 per cent of villages were covered so far.

While commercial banks were in the forefront in achieving the targets, some regional rural banks and private banks needed to pull up their socks.

Poverty reduction

Explaining that the benefits of economic growth were not being distributed equitably among all sections, he said poverty reduction did not just mean improving the income of the poor but other basic needs of the families like education of the children and health should be met.

Mr Rao urged banks to catch the next generation of citizens, now in junior colleges and introduce them to all banking products and enrol them as account holders. Even remote villages and tribal hamlets should produce doctors, engineers and technocrats on par with urban areas.

This would happen only when the banks expanded their operations and liberally funded education activities.

Once banks operated in remote villages, they would be able to afford support to farmers, especially those in distress and also the self-help groups.

Mr Ramsankar Naik, District Collector, and Mr R.N. Dash, General Manager, RBI, among others, participated in the meeting.