What changed
RBI expands the banking coverage roadmap from villages with population above 2000 to all unbanked villages with population below 2000. SLBCs are now mandated to identify and notionally allot these villages to banks for providing banking services, especially EBT, in a time-bound manner. A Sub-Committee of DCCs will oversee identification and allotment through mutual consultation.
What it means for you
Banks must now extend banking outlets to smaller villages, leveraging BCs for EBT delivery, with a brick-and-mortar branch supporting clusters of 8-10 BC units within 3-4 km. This increases operational costs and requires strategic planning for BC infrastructure. Non-compliance could attract regulatory scrutiny as RBI will monitor progress.
What you must do
- Constitute a Sub-Committee of DCCs to identify unbanked villages with population below 2000 and allot them among banks voluntarily.
- Ensure each cluster of 8-10 BC units has a supporting brick-and-mortar branch within 3-4 km for optimal infrastructure use.
- Prioritize EBT services by deploying BC touch points in all villages, starting with at least fortnightly service.
- Coordinate with SLBC and lead banks to finalize the roadmap and submit progress reports to RBI as required.
Who it affects
Scheduled Commercial Banks including RRBs, SLBC Convenor Banks, Lead Banks and DCCs, Business Correspondents (BCs), Rural households in villages with population below 2000
What is the deadline for covering villages with population below 2000?
The circular does not specify a fixed deadline; it mandates SLBCs to prepare a time-bound roadmap. RBI will monitor progress based on feedback from states.
Can multiple banks operate in the same village under this roadmap?
Yes, notional allotment does not bar other banks from operating based on business potential. The allotment ensures at least one banking outlet per village.
What is the role of brick-and-mortar branches in this framework?
Each brick-and-mortar branch should support a cluster of 8-10 BC units within 3-4 km to ensure efficient service delivery and infrastructure utilization.