Business Community of Southern Punjab has hailed the instructions of Federal Minister for Finance Muhammad Ishaq Dar to all the banks to open at least 20 percent new branches in rural, underserved and remote areas. As per policy of State Bank of Pakistan (SBP) all commercial banks are required to open at least 20% of their new branches in rural/underserved areas.
President of Multan Chamber of Commerce & Industry (MCCI), Mian Fareed Mughis A Sheikh said that State Bank of Pakistan had played a key role in establishment of bank branches in rural areas during the last decade. During the last ten years branch network of banks has increased tremendously by adding 6,051 new branches out of which 1,175 branches have specifically been opened in rural and underserved areas. MCCI President said that opening of branches in rural and less privileged areas would develop documented economy besides creating a sense of saving among the rural population besides providing them agri-loans for fertilisers, seed, pesticides and inputs at their door steps.
He further said that banks provide financial assistance to rural women, craftsmen, artisans and small enterprises. He said that it was a good augury that SBP is also encouraging banks to open their branches in less privileged districts having wider rural coverage and the number of Automatic Teller Machines (ATMs) has increased in rural areas of the country. He said that people are not facing any transaction problems in rural areas.
He also hailed the decision of State bank to allow all banks to introduce Aasan Account resultantly the facility of the new bank accounts has increased from 12 % to 23% in rural areas, reflecting positive aspect of the policy.