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.
Key Details
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. 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.
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