SBI to reach out to around 50,000 unbanked villages as part of financial inclusion drive

The country's largest lender, State Bank of India will be reaching out to around 50,000 unbanked villages in the current fiscal as a part of its financial inclusion drive.

“The bank under financial inclusion initiative has planned to cover 50,000 unbanked villages during 2010-11 which will take total reach to 1,50,000 villages,” a senior official of SBI told PTI.

To achieve this target the bank will be hiring 15,000 business correspondents who will visit rural areas and help people in opening bank accounts.

The official said, “In order to expand our presence in the unbanked areas, the bank intends to hire around 15,000 (business correspondents) in 2010—11.”

The official said as it is not possible for banks to open branches in every villages, thus with the help of a business correspondent and business facilitator model it will be possible to take banking facilities to every part of the country.

In Budget 2011, Finance Minister Pranab Mukherjee had said, “To reach the benefits of banking services to the ’Aam Aadmi’ (common man), the RBI had set up a high-level committee on the lead bank scheme.”

Mukherjee had said, “It is also proposed to extend insurance and other services to the targeted beneficiaries. These services will be provided using the business correspondent and other models with appropriate technology back up. By this arrangement, it is proposed to cover 60,000 habitations”.