The Government has reported that 99.92 per cent of villages across India now have access to a banking outlet within a five-kilometre radius, according to data available as of March 6, 2026. Full coverage has been achieved in Dadra and Nagar Haveli.
Banking access is being tracked through a Geographic Information System-based platform, the Jan Dhan Darshak application, which maps the presence of bank branches, Business Correspondents, and India Post Payments Bank outlets.
Officials said the expansion of banking infrastructure continues to face challenges such as poor connectivity, lack of infrastructure, and non-availability of suitable premises in some areas.
Under existing Reserve Bank of India (RBI) guidelines, the rollout of banking outlets in uncovered regions is an ongoing process managed by State Level Bankers’ Committees and Union Territory Level Bankers’ Committees in coordination with state governments and banks. Decisions to open new outlets are based on regulatory guidelines, business plans, and commercial viability, with field surveys conducted where required.
The Government has also expanded efforts to improve access to institutional credit for farmers, particularly through the Kisan Credit Card (KCC) scheme. The scheme now includes working capital requirements for allied sectors such as animal husbandry, dairying, and fisheries.
Under the Modified Interest Subvention Scheme, farmers can avail short-term loans at a concessional interest rate of 7 per cent, with an additional 3 per cent incentive for timely repayment, reducing the effective rate to 4 per cent.
In a move aimed at improving credit accessibility, the RBI has increased the collateral-free loan limit for short-term agricultural credit from ₹1.60 lakh to ₹2 lakh per borrower from January 1, 2025.
Banks are required to allocate at least 18 per cent of their adjusted net bank credit to agriculture under Priority Sector Lending norms, with a sub-target of 10 per cent for small and marginal farmers. Incentive and disincentive frameworks have also been introduced to ensure equitable distribution of credit across districts.
To promote awareness, financial literacy programmes are being conducted through Centres for Financial Literacy and Financial Literacy Camps, alongside nationwide campaigns such as Financial Literacy Week.
Digital platforms such as the Jan Samarth portal and NABARD’s e-KCC system have been introduced to streamline loan applications and approvals. Several banks have also launched mobile applications for end-to-end digital processing of agricultural loans.
Measures have also been taken to strengthen grievance redressal mechanisms in the banking system. Customers can raise complaints through the Centralised Public Grievance Redressal and Monitoring System (CPGRAMS), while RBI’s Integrated Ombudsman Scheme provides an additional avenue for resolution. Updated guidelines under the scheme are set to come into effect from July 1, 2026.
At the district level, Lead District Managers are mandated to hold quarterly public meetings to address grievances, which are also reviewed in Block Level Bankers’ Committee and District Consultative Committee meetings.
The RBI said it continues to ensure adequate liquidity in the banking system to support productive sectors, including rural development.
Additional measures have been introduced to support rural credit flow, including concessional refinance facilities for rural financial institutions and targeted support for Self Help Groups through training, capacity building, and digital onboarding initiatives led by NABARD.
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