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Holy or unholy? Bottomlines shrink, bad loans rise... Fund healthcare clinics in villages... Rationalised Small is ‘more’ beautiful Drastic decline in asset quality Merger mania haunts banks Nothing much can happen…. Insatiable appetite for credit Indian customers are tech savvy Targets continue to be ad hoc How okay are new banks? A development bank for BRICS Stage set for Indian ‘avatar’ of foreign banks Monetary policy continues to adopt dis-inflationary path Managing NPAs... LVB- A supermarket of financial services Cradle of banks to a smart city... Emerging crisis Banking in Telangana From lazy banking to easy banking A new development bank rising in the east… Big bank merger, bigger expectations Why priority status? Anytime banking to anywhere banking Reaching out: is it slowing down? How ‘secure’ are the secured loans? Why any time money? New capitals of Migrant banks Small finance payment banks... Who is the real beneficiary? Two banks: their jubilees and performances Reaching the Unreached… Cautious and considerate Another route for achieving financial inclusion Mega merger is on It’s a war on black money, support it. Lacklustre credit expansion Well-lived... Small finance banks offer high interest rates Governance in Reverse Gear? Drop in SLR- sparing lendable resources Smart banking in smart cities Banking on Risk Needed a Banking Atlas Ferrying digital banking to Lakshadweep Growing volume of stressed assets… Growing gainfully Hesitancy in announcing year-end results The collaboration suite of cyber criminals A bank for women, by women Good, bad and ugly What is the priority – mergers or NPA reduction? Payment banks have arrived One down in private sector United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Perhaps small is more beautiful than big! Financial inclusion vs unclaimed deposits Aadhaar, niraadhaar and banking New bank licences, at last... Cut in repo rate – lower than expected Thirty more cities seek to become SMART Capital base of regional rural banks raised All that glitters is not gold... Greet Lakshmi the banking robot Grows Bigger Bank deposits account for 46.3 per cent of household savings Banking overhauling or reorganisation? Ernakulam excels... Just 660 days! Target over-ambitious... The paradox: clamour for the Goliath and David Too big to fail and too small to sail
 
Another route for achieving financial inclusion

With all the efforts made by the banking sector to expand rural branches, their number, including those of gramin banks, is not more than 44,624 as on June 2014. Under the Branchless Banking Model, banking sector has appointed 195,380 business correspondents, who are supposed to cover 221,341 villages as on March 2013. A good beginning, no doubt, but India has over six lakh villages.

 There are 2.33 lakh gram panchayats. 25 per cent of these panchayats do not have their own buildings. This grass-root level agency needs to be reinforced to morph into Grama Vikas Kendras, as a part of the financial inclusion programme. Gram panchayats must be allowed to obtain loans from commercial banks for constructing their office building while should house the panchayat office, the rural bank branch, a post office, and a primary health centre. It should be located in a central village connected to the market place, preferably on the highway. Since all bank branches now are on Core Banking Solutions (CBS), space required for the branch is not very large. This building, providing essential services under one roof, can become Grama Vikas Kendra, the centre of developmental process. A cash-dispensing machine can be installed to be functional from dawn to dusk. Rent collected on a commercial basis from the ‘tenants’ occupying the premises should be sufficient to repay the loan. National Housing Bank can be roped in to extend refinance to the banks for lending to gram panchayat for this purpose.

Non-availability of premises in rural areas is one of the major constraints faced by banks in opening rural branches.. Nearness to the base branches would enable the business correspondents to devote more time to their customers. With imaginative planning Grama Vikas Kendras could be made as the epi-centres of growth impulses in rural India. Public sector banks have to take a pro-active role, especially in their lead districts for this purpose. Reaching out to rural population would be much effective through this centre.

 

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