The Odisha Government has taken a major step to enhance the financial inclusion and accessibility of banking services in the state. On Wednesday, September 14, 2023, the government signed a Memorandum of Understanding (MoU) with six public sector banks to provide banking services in all unbanked panchayats of the state through Customer Service Point (CSP) outlets.
The scheme and its benefits
The scheme, which was approved by the Odisha Cabinet in August, aims to open ‘CSP Plus’ Banking Outlet in coordination with six public sector banks, namely State Bank of India, Punjab National Bank, Union Bank of India, UCO Bank, Bank of India and Bank of Baroda. The scheme will cover 4373 unbanked Gram Panchayats (GPs) out of 6798 GPs in the state with a budgetary support of around Rs. 500 crores.
The scheme will be implemented in a phased manner to cover all unbanked GPs in the current financial year 2023-24. The government will provide rent-free banking space for five years and also bear one-time expenses for fixed cost and recurring expenses for a period of three years.
The scheme will have multiple benefits for the people residing in the unbanked GPs. They will have easy access to all kinds of banking services free of cost. They will also get doorstep banking services and avail the direct benefit transfer of the government in a timely manner. The scheme will also boost the rural economy and create employment opportunities for the local youth.
The MoU signing ceremony
The MoU signing ceremony was held at the Lok Seva Bhawan in Bhubaneswar. The Chief Secretary Suresh Chandra Mahapatra presided over the event and expressed his satisfaction over the initiative. He said that the scheme will be a game-changer for the rural development and financial empowerment of the people.
The MoU was signed by the representatives of the six banks and the Principal Secretary of Panchayati Raj and Drinking Water Department Deoranjan Kumar Singh. The Finance Secretary Ashok Kumar Meena, the Director of Institutional Finance Laxmikant Behera, and other senior officials were also present at the occasion.
The Chief Secretary also directed the banks to expedite the process of opening the CSP Plus outlets and ensure their smooth functioning. He also asked them to coordinate with the district collectors and other stakeholders for effective implementation of the scheme.
The reaction of the banks and the public
The banks welcomed the scheme and assured their full cooperation to the government. They said that they are committed to providing quality banking services to the rural masses and contributing to their socio-economic development.
The public also expressed their happiness and gratitude to the government for launching the scheme. They said that they are looking forward to availing the banking facilities at their doorstep and enjoying the benefits of various government schemes.
