Maharashtra’s banking infrastructure remained deficient more than a month after demonetisation, with fewer functional ATMs and Banking Correspondents (BCs) in rural areas. The latest bank data also shows abnormally poor disbursement of crop loans under various central schemes, with only 17% target achieved for the Rabi season as opposed to 88 per cent in the Kharif season, clearly signalling that an over burdened banking system was unable to cope with the demands of demonetisation.
The Rabi season in State starts from mid-October and continues until February 15, but this year good rains had encouraged farmers to advance the sowing to late August.
Farm sector demand
“Senior State officials expressed concern over staff problems at bank branches and assured help to cope with the load, urging bankers to improve coverage of farmers," read the minutes of the recent State bankers' committee meeting.
The latest data submitted by State’s 36 major banks to the Union Ministry of Finance show a higher number of ATMs, as many as 14,490, were recalibrated (for Rs 2,000 notes) between November 8, 2016 and December 20, 2016.
But 5,846 or 34 per cent of the total ATMs remained inactive as on December 20, along with 6,306 or 41 per cent of the Banking Correspondents (BCs) not functional as on December 20, 2016.
The BC’s are vital micro-finance agents who help reach out to segments of population left out of the financial inclusion in the rural areas of the state, officials said.
Following the November 8 announcement scrapping high value currency notes, the department of financial services, New Delhi, had advised banks and the State-level bankers’ committee (SLBC) to report daily demonetisation progress to the central government.
Time-consuming process
Senior officials of the State government told The Hindu that though the BC model is a solid alternative route to financial inclusion, the assessment, background check and selection of BCs was time consuming, resulting in low numbers.
“Some of these BCs did not have enough incentives to work as human ATMs but they are now returning to our fold (state banks) after the announcement of demonetisation. The number will surely show a spike in future,” said a senior official of the State Rural Development department.
Rupay cards inactive
The data presented during the during the 133 SLBC held in Mumbai on December 30 also shows that as many as 36,54,471 RUPAY card pins remained un-distributed, which simply meant as many cards were inactive as on December 20. Senior officials said inactive cards meant the transactions in the rural areas were affected and may have some impact on the rural economy in the coming months.
Maharashtra has a total of 6,06,71,379 savings accounts of which 2,98,95,613 have been seeded with Aadhaar and another 3,93,37,820 seeded with the mobile phones. There are a total of 1,62,69,586 accounts under the Pradhan Mantri Jan Dhan Yojna (PMJDY), of which 1,20,17,595 have been seeded with Aadhaar while 59,56,170 seeded with mobile.
The tele density is as high as 93% in the State.
