What changed
The earlier 'One District–One Bank' model for EBT was found inadequate for financial inclusion. Under the new guidelines, village allocation for EBT must now align with the Service Area Approach used for FIP, ensuring the same bank serves both EBT and FIP in a village.
What it means for you
Banks must now coordinate their EBT and FIP responsibilities to avoid duplication or gaps in service. This convergence aims to make financial inclusion scalable and sustainable by leveraging existing banking infrastructure for benefit transfers. Lenders should expect clearer accountability and reduced operational friction with state governments.
What you must do
- Review and align your bank's EBT village assignments with FIP allocations under the Service Area Approach.
- Ensure branch-level coordination to avoid mismatches between benefit transfer and financial inclusion coverage.
- Implement the enclosed operational guidelines for EBT-FIP convergence across all pilot and new districts.
- Engage with state governments to resolve any discrepancies in village allocation promptly.
Who it affects
All scheduled commercial banks implementing EBT, Banks participating in the Financial Inclusion Plan (FIP), State governments and district-level banking committees
Why was the 'One District–One Bank' model replaced?
Stakeholders reported difficulties in scaling the model, and it failed to achieve financial inclusion objectives because the designated bank for EBT often differed from the bank assigned under FIP for the same village.
How will the new guidelines affect my bank's operations?
Your bank must now ensure that the same branch handles both EBT and FIP in a given village, based on the Service Area Approach. This may require reallocation of villages and closer coordination with state authorities.
What is the expected outcome of this convergence?
RBI expects a scalable and sustainable financial inclusion model, with clearer accountability and reduced confusion for both banks and beneficiaries.