Bhubaneswar- During the 27th Eastern Zonal Council meeting in Ranchi, Odisha Chief Minister Mohan Charan Majhi appealed to the Central Government to instruct national-level banks to establish permanent bank branches in the state’s 4,373 unbanked gram panchayats. Highlighting the pressing need for financial accessibility in rural Odisha, he emphasized that only 2,421 of the state’s 6,794 gram panchayats currently have brick-and-mortar bank branches.
Majhi expressed concern over the low banking coverage in remote areas and the limitations of existing Business Correspondents, citing high attrition, inadequate cash handling capacity, and poor internet connectivity. He also pointed out the lack of standardized procedures across banks when it comes to Business Correspondents’ service delivery and remuneration.
The Chief Minister explained that despite over 42,000 fixed-point Business Correspondents and the presence of India Post Payment Bank’s 33 branches with nearly 9,000 access points, many rural areas still remain underserved. In response, Odisha has introduced an innovative financial inclusion model in partnership with six public sector banks, establishing CSP Plus banking outlets that replicate the services of traditional bank branches.
So far, 2,742 CSP Plus outlets have been launched in the same number of unbanked panchayats across all districts. The remaining 1,631 unbanked panchayats are set to receive these services soon. The state government has also committed to ensuring electricity and internet connectivity for these outlets and is covering setup and recurring operational costs for the first three years.
Majhi concluded by urging the Union Government to direct apex-level banks to expand their physical branch network into these unbanked regions and address connectivity challenges. He also recommended enhancing both the fixed and variable commission components for Business Correspondents to ensure retention and better service delivery.
