Rural banking can trigger economic revolution, says K. C. Chakrabarty

The launch of a rural bank branch often marks the start of an economic revolution in a village and its surroundings, RBI Deputy Governor K. C. Chakrabarty said.

Speaking after inaugurating the 3,742nd branch of Canara Bank at Gungralchatra, a hamlet on the outskirts of Mysore, he said new technology initiatives such as Aadhaar (UID), RuPay and Kisan cards will help bring about an economic revolution. Urging customers to use these facilities, he pointed out that banking is a business where money has to rotate and, thereby, provide a multiplier effect.

Speaking to

Business Line on the sidelines, Canara Bank Chairman and Managing Director R. K. Dubey, said the bank would consciously be increasing its rural and semi-urban presence.

Branches, recruitment

The bank, he said, hopes to open about 1,300 branches over the next two years. This would enable the bank to increase its CASA ratio from 25 per cent to 30 per cent of deposits in the next two years, he added.

On recruitment, Dubey said the bank had hired about 7,500 persons last year and would recruit about 7,000 more this year. He added that with this, the bank would practically be replacing a third of its existing workforce in just two years.