Opening of New Branch Post Office – DG Letter

Opening of new post offices (BOs) at 8,734 locations | Proposal for Opening of New Branch Post Offices (BOs) | DG DO Letter to Circles

DO No.40-12/2022-Plg Dated, July 14th, 2022.

This is regarding availability of banking facility within five kilometers of all villages in India. Hon’ble Prime Minister in the 11th meeting of the Inter-State Council held on 16.07.2016 desired enlargement of banking network in rural areas. The issue was taken up by Hon’ble Union Home Minister in the meeting of the Western Zonal Council held at Goa on 22.08.2019, wherein it was advised that all villages in India should be brought under the coverage of a brick-and-mortar bank branch and / or by post offices / IPPB so that the beneficiaries of various social sector schemes in rural areas get DBT disbursement in bank / post office / IPPB account.

2.(a) The review of the progress made in setting up banking facility in the uncovered villages is done in the Standing Committee / Zonal Council meetings held at regular intervals. In this connection, meetings were held on 09.06.2022 and 30.06.2022 under the chairmanship of Union Home Secretary, which was attended by Secretary (Posts) along with senior officers of Inter-State Council Secretariat, DFS (Ministry of Finance), Ministry of Cooperation and RBI.

(b) Based on the data received from Department of Financial Services, Ministry of Finance, there are a total of 25,679 unbanked villages in India, wherein the nearest banking facility is not available within a distance of 5 km. Of these, 6,995 unbanked villages would be covered by IPPB through already opened BOs in the current financial year. The coverage of remaining 18,684 unbanked villages by banking facility within 5 km would require opening a bank branch/ post office at 9,097 locations.

(c) DFS, Ministry of Finance has informed that they would take up opening of 363 new bank branches which will cover villages 1074 unbanked villages. Therefore, the coverage of remaining 17,610 villages would require opening of new post offices at 8,734 locations throughout the country.

(d) As per DFS data, there are 125 unbanked villages in your Circle that would require opening of 97 new post offices to cover remaining unbanked villages (Annexure-l). Opening of new post offices would require financial support in the first instance and subsequently, a reduced recurring expenditure on an annual basis, till such time viability is achieved. Accordingly, it is requested that information in respect of new BOs proposed to be opened for coverage of unbanked villages in your Circle, may be provided in the enclosed format (Annexure-II).

4. I would request you to supply the required information in respect of your Circle by 20.07.2022 positively, so that Department may move a proposal to Department of Expenditure for opening of new post offices that are needed to cover the balance un banked villages in the country.