India Achieves Near-Universal Banking Access, 99. 92 pc of Villages Now Covered - Online Media Cafe
New Delhi, Aug 4: India has achieved a major milestone in financial inclusion, with 99. 92 per cent of inhabited villages now having access to banking services within a five-kilometre radius, the government said. Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that 6,00,868 out of 6,01,328 inhabited villages are covered through a combination of bank branches, Business…
New Delhi, Aug 4:India has achieved a major milestone in financial inclusion, with99. 92 per cent of inhabited villagesnow having access to banking services within a five-kilometre radius, the government said. Minister of State for FinancePankaj Chaudharyinformed the Lok Sabha that6,00,868 out of 6,01,328 inhabited villagesare covered through a combination of bank branches, Business Correspondent (BC) networks and India Post Payments Bank (IPPB) outlets. The figures are based on data uploaded by banks on theJan Dhan Darshak (JDD) App. Representational ImageThe expansion marks a significant step towards ensuring wider access to formal financial services in rural and remote parts of the country. As of July 17, 2026, India’s banking ecosystem included more than1. 81 lakh bank branches,17. 36 lakh Business Correspondents, and1. 65 lakh IPPB centres, creating a vast network for delivering banking facilities. The government said it is continuing efforts to ensure that every inhabited village has access to a banking outlet. Under existing RBI guidelines, commercial banks, small finance banks, payments banks, local area banks and regional rural banks can open branches across the country without prior approval, subject to the condition that at least25 per cent of new branches are established in unbanked rural areas. The progress in rural banking access is being monitored throughState Level Bankers’ Committees (SLBCs)andUnion Territory Level Bankers’ Committees (UTLBCs), which coordinate with state governments, banks and other stakeholders to identify uncovered locations and improve service delivery. The government also highlighted the continued impact of thePradhan Mantri Jan Dhan Yojana (PMJDY)in expanding financial inclusion. The scheme has resulted in the opening of58. 77 crore bank accounts, with total deposits reaching₹3. 12 lakh croreas of July 17, 2026. Alongside expanding banking access, the government has accelerated digital initiatives to improve credit availability, particularly for agriculture and rural borrowers. Platforms such as theJan Samarth Portal,Kisan Rin Portal,KRISHIKA, andNABARD’s e-KYC applicationare helping streamline loan applications, beneficiary verification and credit delivery. The government and the Reserve Bank of India have also stepped up measures to improve cybersecurity and prevent digital payment fraud. TheIndia Digital Payment Intelligence Corporation (IDPIC)enables banks and financial institutions to exchange fraud-related intelligence, while the RBI’s AI-poweredMuleHuntertool helps identify suspicious money mule accounts. Officials said the combined focus on banking expansion, digital infrastructure, credit access and cybersecurity will continue to support inclusive economic growth and strengthen India’s financial ecosystem. Continue Reading