Odisha's Chief Minister Pushes for Banking Expansion in Unbanked Villages
Call for Banking Accessibility in Odisha
Bhubaneswar: On Thursday, Odisha's Chief Minister Mohan Charan Majhi urged the central government to instruct all banks to establish branches in the state's unbanked gram panchayats (GPs).
During the 27th Eastern Zonal Council meeting in Ranchi, chaired by Union Home Minister Amit Shah, Majhi highlighted that out of 6,794 GPs in Odisha, only 2,421 currently have physical bank branches, leaving 4,373 without any.
He emphasized the inadequate geographical reach of banking services in Odisha, noting that as of December 2024, there are 42,035 banking correspondents (BCs) in the state. However, these BCs face limitations in service offerings and cash management.
Additionally, Majhi pointed out that network connectivity issues hinder BC operations in remote regions.
He criticized the inconsistency in commission payments to BCs by banks, which vary based on the services they provide.
The India Post Payments Bank (IPPB) operates only 33 branches and 8,929 access points in Odisha, which do not adequately serve all unbanked GPs.
To address this gap, the Odisha government has partnered with six public sector banks to launch a scheme aimed at providing banking services to all unbanked GPs through Customer Service Point (CSP) plus banking outlets.
Majhi noted that Odisha is pioneering this financial inclusion model in India.
The CSP plus banking outlets offer essential banking services similar to traditional branches. So far, 2,742 such outlets have been established across all 30 districts, with plans to cover the remaining 1,631 unbanked GPs soon.
The Chief Minister also mentioned that the state is facilitating electricity and internet connections to ensure the effective operation of these outlets.
Odisha will cover the initial fixed costs, including banking space and monthly expenses for the first three years of CSP plus banking outlet operations.
Majhi reiterated his request for the central government to encourage banks to open physical branches in unbanked GPs in Odisha.
He also called for measures to resolve internet connectivity issues at the GP level to motivate banks to establish branches and suggested increasing the commission for BCs to reduce their turnover.
In closing, Majhi expressed Odisha's commitment to inclusive growth and regional development, urging that the meeting should lead to actionable steps for transformation under the Viksit Bharat initiative.