Financial inclusions expanding the horizon

.....Traditionally, banking facilities in India are offered through brick-and-mortar offices. Of the nearly one lakh bank branches in the country, more than 37,000 are located in rural India. Nearly one-third of the 6,918 brick-and-mortar branches opened in the country during 2011-12 are situated in rural areas. The RBI report on ‘ Trend and Progress of Banking in India for 2011-12’ says nearly 70 per cent of these branches are situated in tier-2 to tier-6 centres. Compared to the brick-and-mortar branches, the BC model has seen rapid growth. While the branch expansion in rural areas with population of more than 2,000 registered a growth of 7.64 per cent in 2011-12, the number of business correspondents witnessed nearly 10 times that growth. The evolution of the BC model has helped the banks provide banking services to customers without having a branch of theirs. The use of mobile technology is an important part of providing banking services under the BC model. Some banks are disbursing social security schemes’ funds through the BCs.......

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