The visionary leadership of Chief Minister Naveen Patnaik and his government in Odisha continues to blaze a trail of progress, marked by yet another remarkable achievement. On a significant Wednesday, the Odisha Government inked a Memorandum of Understanding (MoU) with six eminent public sector banks, ushering in a groundbreaking era of financial inclusion in the state’s unbanked gram panchayats.
This groundbreaking collaboration brings together the State Bank of India, Punjab National Bank, Union Bank of India, UCO Bank, Bank of India, and Bank of Baroda, all of which will join forces to extend their banking services to every unbanked gram panchayat across the state. This historic initiative will be implemented through the innovative CSP Plus banking outlets.
The Odisha Government’s unwavering commitment to the cause of financial inclusion shines through in this endeavor. Despite the challenges posed by the relatively low and uneven banking penetration across districts, the government remains resolute in its mission. A staggering 65 percent of the 6798 gram panchayats in Odisha, encompassing 4373 gram panchayats, currently lack brick-and-mortar banking branches.
Recognizing the indispensable role of banking services in fostering financial inclusion and supporting the Direct Benefit Transfer system, the state Finance Department emphasized, “Every gram panchayat in the State deserves access to brick-and-mortar banking services for seamless financial transactions.”
The state government has unveiled an ambitious scheme to fulfill this vision, aiming to provide banking services to every gram panchayat through CSP Plus banking outlets. The rollout of this transformative initiative will occur in a phased manner throughout the current financial year, 2023-24.
In a generous gesture, the Odisha Government has committed to providing rent-free banking space for a duration of five years. Furthermore, it will shoulder the one-time expenses for Fixed Costs and Recurring expenses over a period of three years. An impressive allocation of Rs 500 crore underscores the government’s unwavering dedication to this visionary scheme.
This initiative represents a groundbreaking milestone in the annals of financial inclusion in India. Odisha takes pride in becoming the first state in the nation to adopt such an exemplary model for delivering banking services to all gram panchayats.
The far-reaching impact of this endeavor cannot be overstated. Residents of all Unbanked Gram Panchayats in the state will now have unfettered access to a comprehensive suite of banking services, all provided free of cost. Additionally, this initiative extends its reach to the most vulnerable segments of society, including senior citizens, differently-abled individuals, and pregnant women, who will enjoy doorstep banking services and timely access to government Direct Benefit Transfers.
Under the visionary leadership of Chief Minister Naveen Patnaik and the Odisha Government, this initiative marks a monumental stride towards financial inclusion, ensuring that no one is left behind in the journey towards a more prosperous and equitable Odisha.
Prasanta Patnaik 
amfnews