Diyun township in Arunachal deserves a bank

Diyun, a small township on the rise, in Arunachal Pradesh is the economic centre for a population of over 30,000. Diyun town is the headquarter of Diyun Circle under the Diyun-Bordumsa Block in Changlang district. There are 31 villages under Diyun circle according to the 2001 census.

The opening of a bank at Diyun town has been a long pending demand of its residents. In support of their demand, the people, among others, say that Diyun is the economic hub of the entire circle and the circle is not like other areas where law and order problems, inhospitable terrain and non-availability of basic infrastructure pose as impediments in providing banking facilities. Their demand for a bank at Diyun town is further boosted with the announcement of the Finance Minister Shri Pranab Mukherjee during his Budget Speech in the Lok Sabha on February 28 this year reiterating to provide banking facilities to habitations having a population of over 2,000. They argue that at least 4-5 villages under the circle are having a population of more than 2,000.

The demand for a bank at Diyun town is genuine. Presently, there are no banking facilities except at Bordumsa under Diyun-Bordumsa block. The bank at Bordumsa caters to a population of about 26,000 under the Bordumsa circle, while a population of over 30,000 under Diyun circle has been kept deprived. In the absence of banking facilities, the people have to go to neighboring Lohit district or Assam, which are far away, to access a bank. Businessmen and government employees including those who have retired, are the worst affected. The retired persons who are aged are forced to go to State Bank of India, Chowkham branch in Lohit district, which is more than 50 km, to draw their pension.

Arunachal Pradesh has the maximum number of un-banked blocks in the country. Recently, the State Level Bankers' Committee (SLBC) decided to provide banking facilities in 11 blocks out of the present 34 un-banked blocks in the state within this financial year.

The priority has been given to the un-banked blocks in the country under the Centre's financial inclusion programme. There are areas within the banked blocks where banking facilities are urgently required. Diyun is a fit case for having a bank. Most importantly, it meets all the norms for opening up a bank. However, the pleas of its residents were never heard, as there is a bank located at Bordumsa under the block, which is not easily accessible. The residents instead prefer the bank at Chowkham in the neighboring Lohit district or in Assam.

Opening of a bank at Diyun town could play a proactive role in economic empowerment of the people. Given the still high number of un-banked blocks in the state and the block-centric approach of the government it is highly unlikely that the pleas of the residents of Diyun circle will be ever fulfilled, at least not in the near future.

Across the country, there are areas with sizable population within the blocks where banking facilties are urgently required. The government has to come out from its block-centric approach and should also consider areas within the banked-blocks for coverage under the financial inclusion programme.