Source: The Sangai Express / Newmai News Network
Imphal, June 11 2009:
State Level Banking Committee constituted by the government of Manipur has proposed for opening of hub branches in the unbanked blocks in the state, an official source said Thursday.
The banking outreach in the state, particularly in the hill districts, is significantly low.
Only 96 banks branches are operating in the state.
Out of this nine branches of the Manipur Rural bank are not functioning.
Out of 41 blocks of the State across the nine districts, 19 blocks are unbanked.
Many outreach indicators for the State like average population covered per bank branch, deposit and credit growth etc.
are generally adverse to the national averages.
The position is so on account of several impediments in penetration of banking/financial services in the State, which include difficult terrain, sparsely distributed population in hill regions, poor infrastructure, difficulties in obtaining land as collateral, insurgency/law and order problems, complicated system/procedures of banks, lack of awareness amongst large segments of population about formal banking transaction.
The committee on finance sector plan for north east region has recommended for opening of more new branches ad appointment of business correspondent/business, facilitator for these unbanked blocks in the state.
Since, it has been not materialized, the proposal for opening of hub branches has been put forwarded by the State Level Banking Committee during a special meeting of the committee with the State Govt authorities recently.