RBI declares J&K as unbanked State
February 02, 2010 (Mumbai)

The Reserve Bank on Monday categorized Jammu & Kashmir as an unbanked state, which means that the state does not have sufficient banking facility.

This means that banks will have to open certain number of branches particularly in the four districts of Anantnag, Doda, Kupwara and Poonch, if they want to expand their foot print elsewhere in the state.

"We advise that Jammu & Kashmir state be included in the list of underbanked states and consequently, the following under-banked districts of Anantnag, Doda, Kupwara and Poonch have been included in the list of under-banked districts," RBI said in a notification in Mumbai on Monday.

The notification was issued under a clause which says the banks will get permission to open more branches in a state depending on various requirements, including the one that says that at least one-third of total number of branches opened in a financial year in centres with a population of up to 50,000 are in under-banked districts of under-banked state.

Before this, there were 292 unbanked districts in the country.