Bhubaneswar: The Odisha Government will provide banking service in as many as 4373 unbanked panchayats as the State Cabinet today approved a scheme in this regard.

The cabinet approved the scheme to open 'CSP Plus' Banking Outlet in coordination with six Public Sector Banks, namely State Bank of India, Punjab National Bank, UCO Bank, Union Bank of India, Bank of Baroda and Bank of India in 4373 unbanked Gram Panchayats (GPs) of the State with budgetary support of around Rs. 500 crores.

Out of 6798 GPs, around 65% of them (4373 GPs) do not have brick and mortar bank branches. However, the progress in terms of setting up brick and mortar branches in unbanked GPs by banks is very slow and negligible. Therefore, the Government of Odisha has come forward with an ambitious target of providing banking services to every GP through CSP Plus banking outlets, the government said in a press release.

The scheme will be implemented in a phased manner to cover all 4373 unbanked GPs in the State for providing banking services through CSP Plus banking outlets within the current financial year 2023-24. The Government of Odisha will provide rent free banking space for 5 years. In addition to this, the Government of Odisha will also bear one-time expenses for Fixed Cost & Recurring expenses for a period of three years, the release said.

The scheme will enhance the coverage of financial inclusion in the State in a big way. People residing in all Unbanked Gram Panchayats of the State will have easy access to all kinds of banking services free of cost. Senior citizens, differently abled people and pregnant women will get doorstep banking services and avail the Direct Benefit Transfer of the Government in a timely manner, the release added.