At present there are about 100 RUDSETIs operating in the country and Govt. desires that Banks should set up 500 RUDSETIs in the next 2 years to cover all 600 districts in the country. The Secretary, Rural Development Deptt., Govt. of India had advised that left out districts may be distributed among various banks and such information should be sent to them and Reserve Bank of India. He further informed that as per plan of the Govt., atleast 250 RUDSETIs should be functionalised during the year 2008-09 and Banks should submit their action plan for the same. In this context, today’s special meeting of major Banks has been called. Central Govt. has instructed State Govt. to provide land for construction of these institutions on priority basis to the Banks which come forward for setting up RUDSETI. Central Govt. also advised Banks that where land is not easily available, the possibilities of rented premises may be explored to set up RUDSETI. As regards creating infrastructure, NABARD provides one time Rs.10 lakh for creating infrastructure and reimburses 50% of the running expenses, whereas rent is reimbursed by State Govt. with a ceiling of Rs.20,000/- per month.

Six RUDSETIs have been set up in the Gujarat State, of which 2 by Dena Bank at Mehsana and Bhuj, 3 by Bank of Baroda at Gandhinagar, Godhra and Surat and 1 jointly by Syndicate Bank, Canara Bank and NABARD at Nadiad and as per Govt. of India’s instructions each state should have atleast the presence of RUDSETIs in 50% districts in the year 2008-09 itself. Any member Bank which has a sizable presence, other than Lead Bank, can also come forward for setting up RUDSETI.

As per the action plan, 12 RUDSETIs at the following districts will be set up by the end of the Financial Year 2008-09. Out of 26 districts, 18 districts will have RUDSETIs as at the end of 2008-09