RBI model to provide banking services in remote areas

The Reserve Bank of India (RBI) has adopted a business correspondence model—acting as an agent of a commercial bank—to provide banking services to the people of remote areas where there is no banking outlet.

The model would be ideal for North Eastern states like Tripura, a state full of terrains and scattered population, said Usha Thorat, RBI deputy governor here in a seminar.

Under the model, post offices, cooperatives, NGOs, financial institutions, self help groups, retired employees of state or central government may act as an agent of the banks and provide services to people.

The customers would be provided with bio-metric cards, she said adding that the model would bring banking services to the doorstep of the people, and bring transparency in providing wages or allowances to eligible people under various government schemes and programmes.

Ms. Thorat said any significant breakthrough in financial development could be achieved if the state government and bankers work together and identify the issues properly.

State Finance Minister, Badal Chowdhury, who inaugurated the seminar yesterday, appealed to the RBI authorities for opening an office in Tripura so as to improve banking activities in the state. He also pointed out the gradual declining feature of the credit-deposit ratio in the region.