Banking system
India nears 100% banking coverage! Finance Ministry reveals major milestone
The Union Finance Ministry on Monday informed Parliament that India has achieved near-universal banking coverage, with 99.92 percent of inhabited villages now served by a banking outlet.
Replying to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the country's banking network comprises more than 1.81 lakh bank branches, 17.36 lakh Business Correspondents (BCs) and 1.65 lakh India Post Payments Bank (IPPB) centres as of July 17, 2026.
The government aims to ensure that every inhabited village has access to a banking outlet—either a bank branch, Business Correspondent or India Post Payments Bank outlet—within a 5-km radius, particularly in rural and remote areas.
To further expand banking access, the Reserve Bank of India (RBI) has allowed commercial banks, small finance banks, payments banks, local area banks and regional rural banks to open branches anywhere in the country without prior approval, provided 25 percent of the new branches are located in unbanked rural areas.
The minister said the expansion of banking outlets in uncovered areas is an ongoing process overseen by the State Level Bankers' Committee (SLBC) and Union Territory Level Bankers' Committee (UTLBC) in consultation with state and Union Territory governments, member banks and other stakeholders.
Banks consider proposals for opening new banking outlets in accordance with RBI guidelines, their business plans and commercial viability, he added.
Chaudhary also informed the House that, as of July 17, 2026, the country had 58.77 crore Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, with aggregate deposits of ₹3,12,414 crore.
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