India Achieves 99.92% Banking Coverage in Villages

# India Achieves 99.92% Banking Coverage in Villages ### 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**