India achieves near-universal banking coverage

Why in News?
The Government of India informed the Lok Sabha that 99.92% of India’s inhabited villages now have access to a banking outlet within a 5-km radius, reflecting near-universal banking coverage across the country.

Key Highlights

• Out of 6,01,328 inhabited villages, 6,00,868 villages have access to a:
  • Bank branch,
  • Business Correspondent (BC) outlet, or
  • India Post Payments Bank (IPPB) outlet.
• The data is based on information uploaded by banks on the Jan Dhan Darshak (JDD) App.

Banking Network (as of 17 July 2026)

• 1.81 lakh+ bank branches
• 17.36 lakh Business Correspondents (BCs)
• 1.65 lakh India Post Payments Bank (IPPB) centres

Together, these provide banking and financial services across urban, rural and remote areas.

RBI’s Branch Expansion Policy

The Reserve Bank of India (RBI) permits:

• Commercial Banks
• Small Finance Banks
• Payments Banks
• Local Area Banks
• Regional Rural Banks (RRBs)

to open branches without prior RBI approval, subject to the condition that at least 25% of new branches are opened in unbanked rural centres.

Monitoring Mechanism

Expansion of banking services is monitored through:

• State Level Bankers’ Committees (SLBCs)
• Union Territory Level Bankers’ Committees (UTLBCs)

These committees coordinate with State Governments, banks and other stakeholders to identify underserved areas and facilitate the establishment of new banking outlets.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

• PMJDY is the Government’s flagship financial inclusion programme launched in 2014.
• As of 17 July 2026:
  • 58.77 crore Jan Dhan accounts have been opened.
  • Total deposits in these accounts stood at ₹3,12,414 crore.

Source: DD

CLICK HERE: UPSC PRELIMS & MAINS CURRENT AFFAIRS BASED WEEKLY TEST (ENG & HINDI)

CLICK HERE FOR GS TIMES PRAHAR UPSC GS MAINS TEST SERIES 

CLICK HERE: DAILY CURRENT AFFAIRS QUIZ (FOR ALL EXAMINATIONS)