Overcrowded and Inadequate Infrastructure: The Struggle of Uttar Bihar Gramin Bank

On a humid September afternoon, the branches of Uttar Bihar Gramin Bank (UBGB) in Rajepur and Chakia in East Champaran district of Bihar were bustling with customers. The Rajepur branch, perched on the first floor of a modest two-story building, is packed with people waiting in long lines. A group of women waited patiently on the balcony and stairs leading to it, looking over the crowd inside, while more customers entered through the iron gates below.

The branch operated with two people, comprising an officer and a staff who were seen engaged in cash deposition, cash withdrawal, loan approval of customers. Sunita Devi, a resident of the Rajepur village told Kanal, “I have been here since morning to get a loan for our crops, and we’ve been waiting for hours amid inadequate seating arrangement, long waits have become common occurrences at these branches.” “The transactions in the bank can be more seamless and helpful in the presence of a good number of staff.”, further added Sunita Devi.

Several women customers echoed similar concerns, describing how the delays in service affect their work and daily life. Customers come from far-flung villages for their banking needs, as UBGB is often the only available financial institution. They rely on it for essential services, like availing agricultural loans and personal loans, to sustain their families and livelihoods.   

Image: UBGB Rajepur branch in East Champaran 

Customers in Que and Crunch  

At the Chakia branch, a similar scene unfolded — an overcrowded room, people queuing up inside, and a palpable sense of frustration among the customers as they wait for their turn.

Image: The Chakia UBGB branch in a single room with long que

These two branches, classified as “Category C” branches under the S.K. Mitra committee guidelines serve as lifelines for the rural communities of East Champaran. UBGB plays a critical role in offering loans for agriculture, agro-based small businesses, livestock farming, and personal needs. In addition to regular banking services, UBGB supports the rural economy by facilitating Self-Help Groups (SHGs), which offer women in villages a platform to save and secure small loans. 

“The bank plays a crucial role in our community. SHGs are flourishing here thanks to UBGB, providing economic stability to thousands of women. However, the branch's understaffing and inadequate infrastructure are making things difficult for us,” says Anju Kumari, a member of the Chakia SHG.

In fact, Bihar is home to one of the largest Self Help Group networks in India.

Financial Lifeline Struggle with Poor Connectivity

The Brahampura branch of UBGB in Muzaffarpur district serves as a vital financial lifeline for the local community, particularly farmers.

Image: UBGB Brahampura branch in Muzaffarpur district

Farmers in the area, though grateful for the bank’s services, are increasingly frustrated by the inconsistent internet connectivity, which frequently delays critical processes such as loan approvals. In addition to infrastructural issues, the branch faces a clear staff shortage. With only two employees managing hundreds of customers daily, the slow banking process exacerbates the frustrations of both staff and customers.

“There’s not enough staff here, and the slow internet just makes things worse. It takes forever to get anything done,” an elderly man shared with this journalist at the Brahampura branch, visibly frustrated after waiting for hours to complete a simple transaction.

Ramashish Baitha, a 53-year-old experienced farmer, highlighted the bank’s importance, saying, “The bank has been a steadfast support for agriculture, livestock farming, and agro-based activities. However, poor infrastructure and network issues frequently disrupt transactions, exposing the difficulties the bank faces.”

Despite these challenges, the Brahampura branch remains a crucial institution, providing essential services like withdrawals and deposits for the local population. However, the lack of adequate resources and overwhelming demand have compromised UBGB’s ability to fully serve the region. A systemic overhaul, including improved staffing and infrastructure, is urgently needed to ensure the bank can continue its critical role in rural Bihar.

The issues of staff shortages and inadequate infrastructure faced by UBGB are widespread across RRBs in India, which continue to await much-needed redressal.