Raise credit penetration in 112 aspirational dists, FinMin tells banks

The Finance Ministry asked banks to further increase credit penetration in aspirational districts and ensure availability of at least one banking outlet within 5 km of all inhabited villages

The Finance Ministry on Friday asked banks to further increase credit penetration in aspirational districts and ensure availability of at least one banking outlet within 5 km of all inhabited villages.

Progress of 112 Aspirational Districts under Targeted Financial Inclusion Intervention Programme (TFIIP) was discussed in detail during a review meeting of Lead District Managers (LDMs) of aspirational districts and State Level Bankers' Committee (SLBC) convenors chaired by banking secretary Vivek Joshi.

"Banks were also requested to run financial literacy camps in villages with the help of Panchayati Raj institutions to further improve the performance of financial inclusion schemes. A reward and recognition programme for performing districts and SLBCs was also discussed," said an official release.

Joshi appreciated the efforts of SLBCs and LDMs in furthering the drive for financial inclusion in the country and requested LDMs and SLBC convenors to utilise the next six months with renewed vigour and zeal to achieve the set milestones.

The review meeting was also attended by senior officials of NITI Aayog, Panchayati Raj, and the Department of Financial Services (DFS) in the Union Ministry of Finance.

Launched by Prime Minister Narendra Modi in January 2018, the Aspirational Districts Programme (ADP) aims to quickly and effectively transform the 112 most under-developed districts across the country.

The broad contours of the programme are Convergence (of Central & State Schemes), Collaboration (of Central, State level Nodal Officers & District Collectors), and Competition among districts through monthly delta ranking; all driven by a mass movement.