Agartala (Tripura) Jan 18: Sikkim has 11 commercial banks with branches spread across nearly the entire state. Despite most of its 610,577 residents living in rural areas, the majority have access to banking services. The primary reason for this widespread banking adoption is the state’s literacy rate of 81.4%, significantly higher than the national average of 73%.
The second factor is the effective implementation of welfare schemes, such as scholarships for students and rural employment programs. Additionally, since the launch of the Pradhan Mantri Jan Dhan Yojana on August 23, 2014, Sikkim has seen remarkable progress in banking services.
The scheme offers life insurance, loans, and mobile banking, enabling people across the country to access institutional financial assistance and protecting them from exploitative moneylenders.
The Jan Dhan Yojana emphasizes household coverage, providing free bank account openings with overdraft facilities up to ₹5,000, RuPay debit cards, and accident insurance cover of ₹1 lakh. Farmers with accounts are also provided with RuPay Kisan Cards.Since the scheme’s inception, 102,344 out of 122,238 households across Sikkim’s 989 wards have gained access to banking services.
According to the latest data from the state’s leading bank office in Gangtok, 34,279 accounts have been opened under this scheme. While the number of accounts may seem modest, the progress rate of 98.45% demonstrates that this small Himalayan state is significantly ahead in banking penetration.
Among the 11 commercial banks, the State Bank of India (SBI) has brought 57,526 households under banking services, while the Central Bank of India serves 25,570 households.
Within a short period, SBI has achieved a 98.45% success rate by opening 34,279 new accounts, underscoring Sikkim’s leadership in banking services compared to other states.Beyond opening new accounts, Sikkim’s banks have also amassed significant deposits, totaling ₹21,97,785. Of the new accounts, 10,971 are zero-balance accounts, and 11,712 are Aadhaar-linked.
Additionally, 21,680 customers have received RuPay cards, along with ₹1 lakh personal accident insurance coverage. Valid beneficiaries also receive ₹30,000 in life insurance. In his Independence Day address last year, Prime Minister Narendra Modi announced the Jan Dhan Yojana, targeting 100 million new bank accounts nationwide.
This goal was surpassed, reaching 115 million accounts, with deposits exceeding ₹8,300 crore, as per the 2014-15 economic survey.When asked why Sikkim hasn’t achieved 100% success under the scheme, bank officials noted that surveys revealed issues like locked homes or school addresses being listed as residential ones.
However, no decisions have been made yet on how to bring the remaining households into the banking fold. On the question of Sikkim’s 98.45% success rate, bank officials explained that reaching rural and unbanked households within just five months was no easy task.
Convincing unbanked families about the scheme’s benefits was the biggest challenge. Bank staff conducted awareness camps, disseminated messages, and carried out door-to-door campaigns. Print media and radio played a crucial role in spreading awareness. However, officials admitted that reaching the state’s remote and challenging areas remains a hurdle.
Meanwhile, many urban and rural residents remain unaware of the scheme’s benefits, primarily due to a lack of awareness. To achieve comprehensive success, banks have sought assistance from gram panchayats to organize periodic village meetings to educate people.
Following the Prime Minister’s directives, Sikkim’s banks are making every effort to provide loans, insurance, and pension benefits to all customers. The next phase of the scheme will focus on micro-insurance and pension initiatives to benefit millions of poor people. The emphasis is on ensuring that unbanked individuals are seamlessly integrated into the scheme’s benefits. Overall, concerted efforts are underway to meet these targets within the next two to three years.
