About 300 branches to be opened by PSB by December 2022 in Unbanked rural areas

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The Government of India owned Public sector banks has been asked to open about 300 branches in the unbanked areas of various states by December 2022.  At present there are 12 Public Sector Banks in India.

This was decided at the recent meeting of heads of public sector banks with the Financial Services Secretary, Dr Debashsish Panda, last month, regarding the progress made in opening branches in the rural areas.

• These new branches will cover all remaining unbanked villages with a population of more than 3,000.
• A Maximum number of 95 branches will be opened in Rajasthan followed by 54 in Madhya Pradesh.
• The public sector banks will open 38 branches in Gujarat, 33 in Maharashtra, 32 in Jharkhand and 31 in Uttar Pradesh.
• Bank of Baroda will open 76 branches, while State Bank of India will establish 60 branches.

What is an Unbanked Rural Center ?

According to RBI ,an unbanked rural centre (URC) is defined as a rural centre that does not have a  Core Banking Solution (CBS)-enabled ‘banking outlet’ of a Scheduled Commercial Bank or a CBS-enabled Regional Rural Bank, Local Area Bank, licensed Co-operative Bank or any other CBS-enabled bank licensed by the Reserve Bank for carrying out customer based banking transactions.

What is a Banking outlet ?

According to RBI, a ‘Banking Outlet’ is a fixed point service delivery unit, manned by either bank’s staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques/cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at least five days a week.

Core Banking Solution ?

All the branches of the bank are interconnected through a common server which enables anytime, anywhere banking facilities.  Here CORE means Centralised Online Real-time Exchange.

Full form for exam :

CBS/CBS: Core Banking Solution

CORE/CORE: Centralized Online Real-time Exchange