India Achieves Near-Universal Banking Access with 99.92% Village Coverage

India Achieves Near-Universal Banking Access with 99.92% Village Coverage​

Banking Outlets Reach Almost All Inhabited Villages​

New Delhi, March 30: Nearly 99.92 percent of inhabited villages across India now have access to a banking outlet within a five kilometre radius, the Parliament was informed on Monday.

Providing further details, Minister of State for Finance Pankaj Chaudhary stated in a written reply to the Lok Sabha that full coverage has been achieved in the Union Territory of Dadra and Nagar Haveli, where 100 percent of villages are now connected to banking outlets within the same distance.

Jan Dhan Darshak App Maps Nationwide Banking Presence​

According to a Finance Ministry statement, the Jan Dhan Darshak App serves as a Geographic Information System based monitoring tool that maps banking infrastructure across the country. The platform integrates data on bank branches, business correspondents, and India Post Payments Bank outlets, highlighting their extensive reach.

The minister noted that the application enables geographic tracking of banking services and helps monitor financial inclusion efforts in real time.

Challenges Persist in Expanding Banking Infrastructure​

Despite the near-universal coverage, certain challenges continue to affect the expansion of banking infrastructure. Key issues include limited connectivity, inadequate infrastructure, and the lack of suitable premises in some areas.

RBI Guidelines Drive Continuous Expansion Efforts​

As per Reserve Bank of India guidelines, the establishment of banking outlets in uncovered regions remains an ongoing process. This initiative is overseen by the State Level Bankers' Committee and the Union Territory Level Bankers' Committee.

The rollout is carried out in coordination with state governments, member banks, and other stakeholders to ensure broader financial access.

Banks evaluate proposals for opening new outlets based on regulatory instructions, internal business strategies, and commercial viability. Surveys are also conducted where necessary to assess feasibility.

India Post Payments Bank Strengthens Financial Inclusion​

India Post Payments Bank, operating under the Department of Posts and fully owned by the central government, continues to play a key role in expanding banking services. It leverages a vast network of 1.65 lakh post offices and around 3 lakh postal employees to deliver financial services across the country.

The bank has been recognised with the Digital Payments Award 2024-25 for its contribution to promoting digital payments and advancing financial inclusion nationwide.