4,921 Odisha Gram Pachayats Have No Banking Facilities: Minister

Bhubaneswar, Dec 21 (PTI) With 4,921 gram panchayats in Odisha having no banking facilities, the state government on Saturday asked the bankers to open brick-and-mortar branches in remote and left-wing extremism hit areas.

The state government issued such direction to banks at the 157th meeting of the State Level Bankers Committee (SLBC) here.

"Banking service is not available in 4,921 of the state's 6234 gram panchayats. Since the state is attaching importance on DBT (Direct Benefit Transfer), works are severely affected due to lack of bank branches in rural pockets," said Finance minister Niranjan Pujari.

He said: "Unless financial inclusion is strengthened with brick and mortar branches, the DBT model cannot succeed."

The finance minister said the state government has 194 schemes for social protection of the poor people. However, all the efforts is not yielding any result due to lack of banks.

The minister said that the agriculture credit disbursement by banks continued to remain very poor. Only 38.13 per cent of the target is achieved, he said, adding that lending also remained poor in the allied sectors.

Development Commissioner S C Mohapatra said banking service is not available in aspirational districts and tribal dominated districts hit by LWE.

Sources in the banking sector said that there are 5,395 brick and mortar branches in Odisha.

Debashish Panda, special secretary, Department of Financial Service, however, said there is no liquidity problem and the banks are flush with funds.

"Banking Correspondent is a very effective model. People of the community in aspirational and LWE districts have been engaged as BCs," Panda said.

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