RBI asked the banks to open banks in villages with a population of more than 5000

Reserve Bank of India (RBI) asked State Level Bankers’ Committee (SLBC) banks to identify villages with population above 5,000 without a bank branch of a scheduled commercial bank in their state.

• Identified villages may be selectedamong scheduled commercial banks for opening of branches and should be completed by March 31, 2017.
• January 2015 keeping in view the executionof PradhanMantri Jan DhanYojana (PMJDY), SLBC Convenor banks and lead banks were asked to complete the process of providing banking services in unbanked villages with population below 2000 by August 14, 2015

Benefit: Enable banks to provide quality financial services and timely support to BC outlets.

Key point:

State Level Bankers’ Committee (SLBC) came into existence under Lead Bank Scheme as per RBI guidelines. It is an inter-institutional forum at State level ensuring co-ordination between Government and Banks on matters pertaining to banking development.