Ref. No. NB.DFIBT.HO/13516-13578/DFIBT-23/2018-19
Circular No. 73 /DFIBT- 03/2019
22 March 2019
The Managing Director & Chief Executive Officer,
All Scheduled Commercial Banks
All Regional Rural Banks in North-Eastern States
Support from Financial Inclusion Fund- Scheme for opening Kiosk Outlets in unbanked villages of North Eastern States (NER States)
The Business Correspondent (BC) model forms the corner stone of India’s financial inclusion strategy to ensure delivery of banking services in remote villages across the country. However, despite the progress in geographical outreach, many villages in North Eastern States, predominantly with population less than 500 remain uncovered. Some of the challenges in these areas are difficult terrain, scattered villages, villages with miniscule population, non-availability of qualified BC, etc. This coupled with non-viability of these BC points is a dampening factor to banks to start BC activities in such villages. This scheme has been formulated to ensure setting up of BC outlets in remote areas, which are sparsely populated, as well as to compensate for the time lag in achieving viability of these BC points.
2. To augment the number of BCs/CSPs in the form of Kiosk outlets for providing comprehensive financial services in unbanked villages with population less than 500 in NE States, it has been decided to provide one time grant support from Financial Inclusion Fund. The support would be available to Scheduled Commercial Banks and Regional Rural Banks towards capital cost for setting up of kiosk outlets to facilitate BC operations with installation of micro ATM, computer/laptop, printer, furniture etc. The extent of grant will be 60% of actual cost or ₹45,000/, whichever is less, per outlet for Scheduled Commercial Banks and 80% of actual cost or ₹60,000/-, whichever is less, per outlet for Regional Rural Banks.
2. Banks may open the kiosk outlets and submit their application for financial support for each state to our respective Regional Offices under whose jurisdiction the State falls, as per format in Annexure-I. The terms and conditions of the support are given in Annexure II. The grant support will be provided on reimbursement basis.
(D Nageswara Rao)