A recent press report said that there are around 6000 villages with a population of more than 2000 in Andhra Pradesh, without bank. The state government has anticipated that the banks would complete their appointment of business correspondents to these villages by the end of this year.
The Reserve Bank of India has made it mandatory to banks throughout the country to appoint business correspondents to villages where the populations would be 2000 and more as an initiative of financial inclusion in the first phase by March next year. This financial inclusion initiative for villages with less than 2000 population would be started once this round has been completed.
These Business correspondents would act as extension of the nearest bank of their respective banks in order to extend banking services such as opening a savings bank account for the people in those villages. It is very essential to open savings account in banks because all the financial benefits under various beneficiary schemes would be directly transferred to the corresponding account.
In this facet, the RBI’s regional director has reviewed the steps taken forward by the banks in the state to complete the task. The banks informed the regional head that they have completed the appointment of business correspondents in about 60 per cent of the villages and the remaining villages would be covered by the end this year.