Bhubaneswar: The Odisha Cabinet today approved the scheme to open “CSP Plus” Banking Outlet in coordination with six Public Sector Banks, namely State Bank of India, Punjab National Bank, UCO Bank, Union Bank of India, Bank of Baroda 86 Bank of India in 4373 unbanked Gram Panchayats (GPs) of the State with budgetary support of around Rs. 500 crore.
Financial inclusion is a high-priority agenda of the Government. For the state of Odisha, Financial inclusion is still a critical challenge since banking penetration in the state is quite low, said an official press release.
Out of 6798 GPs, around 65% of GPs (4373 GPs) do not have brick-and-mortar branches. Since banking is an essential service for financial inclusion, every GP of the State needs to be provided with a brick-and-mortar branch for uninterrupted banking services.
However, the progress in terms of setting up brick-and-mortar branches in unbanked GPs by banks is very slow and negligible. Therefore, Government of Odisha has come forward with an ambitious target of providing banking services to every GP through CSP Plus banking outlets.
The scheme will be implemented in a phased manner to cover all 4373 unbanked GPs in the State for providing banking services through CSP Plus banking outlets within the current financial year 2023-24. Government of Odisha will provide rent-free banking space for 5 years.
In addition to this, Government of Odisha will also bear one-time expenses for Fixed Cost 86 Recurring expenses for a period of three Years.
The scheme will enhance the coverage of financial inclusion in the State in a big way. People residing in all Unbanked Gram Panchayats of the State will have easy access to all kinds of banking services free of cost. Senior citizens, differently-abled people and pregnant women will get doorstep banking services and avail the Direct Benefit Transfer of the Government in a timely manner.
