The RBI’s monetary policy statement for 2012-13 has said that penetration of banks in rural areas has increased. It said that banks are now providing banking services in rural areas through 1,38,502 outlets. This includes 24,085 rural branches, 1,11,948 business correspondent outlets, and 2,469 outlets through other modes. In early March 2010, banks had only 21,475 brick and mortar branches in rural areas. No-frills accounts No-frills accounts have increased to around 99 million with...

The finance ministry has asked public sector banks to devise products for Indian farmers to ensure they get adequate funding in emergencies. The government, the majority owner of such banks, wants them to roll out products such as emergency loans to farmers that will be linked to savings accounts, a weather index-based insurance product, and set up a credit guarantee fund that will aid farmers in the event of crop losses...

It would be great if the enthusiasm on the financial inclusion agenda gets a pause from the frantic do-gooders . Too many people appear to be enthusiastic about serving the poor - and the kindness is killing. Back in 1956, we discovered that cooperatives were a great instrument to reach out to the poor. These were peoples' institutions, local and would be responsive to the problems of their members. A set of...

-PTI   Mamata had said that co-operative banks would not be allowed to attach properties of farmers for loan recovery in cases of default Refinance institution Nabard today said it would oppose any amendment to West Bengal Cooperative Societies Act of, 2006 as suggested recently by state Chief Minister Mamata Banerjee. "If the West Bengal government goes ahead with amending the Act without informing Nabard, then we will oppose it," National Bank for Agriculture...

-The Business Standard   The National Bank for Agriculture and Rural Development (Nabard) has recorded a 40 per cent growth in agriculture credit and rural development in Karnataka during 2011-12. It has extended farm credit of Rs 6,053 crore during the year. While the production credit refinance extended to cooperative banks and Regional Rural Banks (RRBs) was Rs 3,775 crore, its finance to state government under the Rural Infrastructure Development Fund (RIDF)...