Public sector banks to open 316 branches in financial inclusion drive

In order to promote financial inclusion, Indian public sector banks plan to open approximately 300 physical branches by the end of 2022, according to PTI via Money Control.

“The new branches will open in multiple states across the country and cover the remaining underbanked villages with a population of more than 3,000,” said in news.

As per the plan, 95 branches will open in Rajasthan, and 54 in Madhya Pradesh.

The banks will also open 38 brick-and-mortar branches in Gujarat, 32 in Jharkhand, 33 in Maharashtra and 31 in Uttar Pradesh.

Last month, heads of public sector banks met with the Financial Services Secretary to review the progress they have made in opening rural branches, as per report said.

“The lenders are required to set up branches at locations specified by the concerned State Level Bankers’ Committee (SLBC) by December 2022,” the sources added.

The initiative will see the State Bank of India set up 60 branches and the Bank of Baroda open 76 branches.

In an effort to drive financial inclusion, the government is providing an opportunity for underbanked consumers to participate in the formal financial system through the provision of a platform.

“The regulated entities (REs) offering credit via digital means have until 30 November to comply with new norms for existing digital loans,” said Reserve Bank of India (RBI) in a separate development.

“in order to ensure a smooth transition, regulated entities shall be given time till 30 November, to put in place adequate systems and processes. It is to ensure that ‘existing digital loans’ (sanctioned on the date of the circular) are also in compliance with these guidelines,” the central bank stated.

In order to tighten its regulatory grip on the digital lending industry, the Reserve Bank of India released new rules last month.

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