Rural services: RBI unhappy with banks' performance

SRIKAKULAM: Reserve Bank of India is dissatisfied with the poor progress of the banks in providing banking facilities for the rural areas with more than 2000 population. The RBI officials have identified that 6,999 villages in Andhra Pradesh could be provided banking facilities, but in reality only 840 villages have been given an opportunity to transact with the nearby branches. Districts such as Srikakulam are also lagging behind in achieving the targets of RBI officials.  As per the new guidelines, the banks have to appoint business correspondents to open new accounts and take up transactions where there are no branches for the respective banks. Only State Bank of India and Andhra Bank are ahead of others in implementing the guidelines of the RBI in Srikakulam district. SBI-Ramalaxmana branch has started ‘banking on bike' two months ago to provide hassle-free services to customers of the villages where there are no branches for the bank. The business correspondents of the bank will have to complete transactions within Rs.10,000 in the village itself as they are equipped with Internet connected laptop and scanner. They can open new accounts also. The facilitators, who move on bikes, will complete the transactions in the villages and update the information immediately after reaching the respective branches. Reserve Bank of India Assistant General Manager T. Kiran Kumar has told the The Hindu that the banks might overcome the teething problems and reach the targets by March 2012. He has said that the RBI and banks are trying to provide attractive remuneration to the persons who join as business correspondents in villages.