Rural banking: RBI to issue fresh guidelines for intermediaries
22 Feb 2010
The Reserve Bank of India (RBI) plans to introduce new guidelines on the business correspondent (BC) model that would facilitate greater spread of banking services to remote areas.
''At present, the model is too restrictive and we are constantly examining the correspondent model to make it more operative,'' Reserve Bank of India executive director H R Khan said on Friday.
He was speaking at a function to launch Punjab National Bank's biometric ATM at Ranikhera village near New Delhi in coordination with the RBI. The facility will enable the ATM to be operated with the help of physical identification such as finger or palm impressions, making it easier to use for illiterate persons.
The ATM counter will service four villages and approximately 300,000 villagers.
Several other banks such as Syndicate Bank, State Bank of India, and Oriental Bank of Commerce are also in planning to open many such ATM branches.
''There is an immense potential in the far-flung areas of our country. Around 65 per cent of India doesn't have a bank account. Therefore, our approach is always to work towards the financial inclusion and provide knowledge of banking in those areas,'' said Nagesh Pydah, executive director, Punjab National Bank.
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