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Opening USBs or ultra-small branches is the new mantra for public sector bankers in the country.
Over 900 villages, or about 2.5 per cent of the villages, where public sector banks have implemented financial inclusion programme have USBs. For the past few years, banks have been trying to reach un-banked villages as part of a regulatory mandate.
The roadmap to financial inclusion had envisaged covering 74,414 villages with population above 2,000 by March 31, 2012. Recently, the Reserve Bank of India said that banks have covered 74,199 villages or 99.7 per cent of the target. As part of their commitment, public sector banks have covered over 37,000 villages.
Annual reports of various banks that are just coming out make prominent mention about USBs.
The RBI thinks that opening of USBs would lead to efficiency in cash management, documentation, redressal of customer grievances and close supervision of business correspondent (BC) operations.
The BC model, in which a representative of the bank carries out the banking operation, has contributed in a big way in the implementation of financial inclusion.
Over 900 villages, or about 2.5 per cent of the villages, where public sector banks have implemented financial inclusion programme have USBs. For the past few years, banks have been trying to reach un-banked villages as part of a regulatory mandate.
The roadmap to financial inclusion had envisaged covering 74,414 villages with population above 2,000 by March 31, 2012. Recently, the Reserve Bank of India said that banks have covered 74,199 villages or 99.7 per cent of the target. As part of their commitment, public sector banks have covered over 37,000 villages.
Annual reports of various banks that are just coming out make prominent mention about USBs.
The RBI thinks that opening of USBs would lead to efficiency in cash management, documentation, redressal of customer grievances and close supervision of business correspondent (BC) operations.
The BC model, in which a representative of the bank carries out the banking operation, has contributed in a big way in the implementation of financial inclusion.
RBI circular
Recently, an RBI circular noted the need for having an intermediate brick and mortar structure (ultra-small branch) between the present base branch and BC locations. The circular suggested that these USBs could be either newly set up or by conversion of the BC outlets. Such USBs should have minimum infrastructure, such as a core banking solution terminal linked to a pass book printer and a safe for cash retention for operating large customer transactions.
It would have to be managed full time by bank officers/employees, it said.
Some banks, such as Bank of Maharashtra, Canara Bank and Syndicate Bank, have opened more than 100 brick and mortar branches in the villages allotted to them along with BCs.
The number of such branches by all public sector banks put together now exceeds 800.
vinayakaj@thehindu.co.in
It would have to be managed full time by bank officers/employees, it said.
Some banks, such as Bank of Maharashtra, Canara Bank and Syndicate Bank, have opened more than 100 brick and mortar branches in the villages allotted to them along with BCs.
The number of such branches by all public sector banks put together now exceeds 800.
vinayakaj@thehindu.co.in
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