Question : SAMPOORN VITTIYA SAMAVESHAN MISSION

(a) whether the Government has asked banks to open millions of accounts in a year under Sampoorn Vittiya Samaveshan Mission;

(b) if so, the details thereof;

(c) whether the Reserve Bank of India (RBI) has permitted business correspondent model to ensure financial inclusion and increase the outreach of the banking sector; and

(d) if so, the details thereof and the number of business correspondents across the country as on date along with the percentage of commission to be given to each banking correspondent?

The Minister of State in the Ministry of Finance (Smt. Nirmala Sitharaman)

a) and b) To provide all households in the country with banking services, a time bound programme would be launched as Financial Inclusion Mission which would particularly focus to empower the weaker sections of the society, including women, small and marginal farmers and labourers.

c ) and d) Reserve Bank of India (RBI) in January 2006 permitted banks to utilize the services of intermediaries viz. Business Correspondents (BC) in providing banking services.

The BC Model ensures a closer relationship between poor people and the organized financial system. RBI has reported that as on 31.03.2013, there were 194772 Business Correspondents.

RBI has advised banks to pay reasonable commission / fee to the BC, the rate and quantum of which is reviewed periodically.