Why in News?
The Ministry of Finance reported that 99.92% of India's 6,01,328 inhabited villages now have a banking outlet within a 5 km radius, marking a major milestone in financial inclusion.
What does this milestone mean?
- 6,00,868 villages are served by a bank branch, Business Correspondent (BC), or India Post Payments Bank (IPPB) centre. This ensures that even remote villagers can access basic banking services without traveling far.
- The banking network includes 1.81 lakh bank branches, 17.36 lakh Business Correspondents, and 1.65 lakh IPPB centres. Business Correspondents act as banking agents, extending services to unbanked areas.
- PM Jan-Dhan Yojana (PMJDY), launched in 2014, has opened 58.77 crore accounts with a combined balance of ₹3,12,414 crore. This scheme provides a RuPay debit card and an overdraft facility of ₹10,000.
- To ensure rural focus, RBI mandates that commercial and regional rural banks open 25% of their annual branches in unbanked rural areas.
- Digital tools like the Jan Dhan Darshak App (GIS-based monitoring), Kisan Rin Portal (for farmer credit), and Jan Samarth Portal (single window for government schemes) are enhancing last-mile delivery.
- For fraud prevention, RBI's AI tool MuleHunter and the India Digital Payment Intelligence Corporation help identify and stop fraudulent transactions.
Exam Connect
PMJDY → National Mission for Financial Inclusion, launched August 28, 2014, nodal ministry: Ministry of Finance
IPPB → Established 2018, 100% government-owned under Department of Posts
Kisan Credit Card (KCC) → Introduced 1998 on the recommendation of the R.V. Gupta Committee