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Abstract

The article explores the geographical distribution of private sector banks in India and its impact on financial inclusion and Challenges. At the end of March 2012, 50.8 million no frills account were opened by the banking system. The banks have a challenge to keep these accounts operational. Banks were advised to provide small overdraft in these accounts, and up to March 2011 banks provided overdraft of Rs. 30.54 crore. No frills account provides the opportunity for a common man to open bank account. These accounts have no pre condition and low minimum balance maintenance. RBI initiated scheme of no frills account in 2005 to improve financial inclusion and now RBI taken necessary steps to develop the new bank branches to all rural area.

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