Appointment of Bank Mitras, Remuneration, terms and conditions set by NABARD: State-wise Details

Appointment of Bank Mitras, Remuneration, terms and conditions set by NABARD: State-wise Details

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

RAJYA SABHA

UNSTARRED QUESTION. No. 60

Answered on Tuesday, Februry 2,
2021/ I 3 Magha, 1942 (Saka)

Appointment of Bank Mitras

60 Shri Manas Ranjan Bhunia:

Will the Minister of FINANCE be pleased to state:

• whether Government has appointed Bank Mitras to facilitate the banking services to the people of rural, urban and metro areas;
• if so, the number of Bank Mitras in the country, State-wise;
• the remuneration they are getting per month from the banks or agencies appointed by the banks;
• the negotiating terms and conditions set by NABARD with the banks for these Bank Mitras; and
• whether all the terms and conditions are fulfilled by the banks?

Answer

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (c) As per extant guidelines dated 18.5.2017 on rationalisation of Branch Authorisation Policy, Reserve Bank of India (RBI) has granted general permission to domestic Scheduled Commercial Banks (excluding Regional Rural Banks) to open banking outlets at any place in the country, without seeking prior approval of RBI in each case subject to at least 25 percent of the total number of banking outlels opened during a financial year being in unbanked rural centres i.e. centres having population less than -10,000 (Tier 5 and Tier 6 centres).

A ‘Banking Outlet’ for a Domestic Scheduled Commercial Bank, a Small Finance Bank and a Payment Bank is a fixed point service delivery unit, manned by either bank’s staff or its Business Correspondent (BC).

As informed by RBI as on 30.3.2020, a total of 9.58 lakh BCs are working in the country. State-wise data of BCs is at Annexure.

As per RBl’s master circular dated 1.7.2014 on Branch Authorisation’, banks are permitted to formulate a policy for engaging BCs with the approval of their Board of Directors. Further, the terms and conditions governing the contract between the bank and the BC are required to be defined in written agreements and subjected to a thorough legal vetting.

(d) & (e) NABARD has informed that it is not involved in negotiating with the banks with respect to terms and conditions for Bank Mitras.

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