Giving a boost to rural banking Union Finance minister P Chidambaram would inaugurate 300 new branches of the Public Sector Banks in Uttar Pradesh on Friday.
Chief minister Akhilesh Yadav would preside over the function when Chidambaram would inaugurate the branches at one go. Officials said that the move will give impetus to the banking sector and increase the ratio of banks to population in the State.
The UP government had earlier informed RBI that the state needs at least 3000 new banks branches to come at par with the all India ratio of banks per capital population. The national per capital banks to population ratio is 13000 while for UP it is about 16000.
Under the timelines 300 new bank branches would be opened on March 29, 450 in June, 600 in September, 750 in December and 900 in March 2014.
"While giving priority in developing the rural area the state government has decided to set up new bank branches in 1598 villages identified and assimilated under the Dr. Ram Manohar lohiya Samagra Gram Yojna," Government spokesman said.
He said that the State Government has also worked on a plan to ensure broadband connectivity at all bank branches in far flung areas. The security of these bank branches is also being ensured and the State Police Department, through the Crime Division, has been put in the loop to devise a long term strategy of giving adequate security to the bank branches that will open in the State, he said.
With more than 80 per cent new branches opening up in the rural areas, one more promise of State Government of giving the rural sector its long overdue chunk in the development pie is being fulfilled, the spokesman said.