The RBI will soon engage business correspondents to provide banking services in villages such as these, she said.

'To act on behalf of the banks, non-government organisations, self-help groups, cooperatives, financial bodies, retired teachers and government employees and responsible citizens will be employed as business correspondents.'

'The RBI has taken several measures to cover more villages in the country,' she said, adding that to improve banking services, adoption of latest digital technology is the only solution.

According to her, the state and central governments needed to focus on upgrading the infrastructure in the northeast to attract more investment to the region.

'Infrastructure and industrial sectors of the seven northeastern states are still not developed, for which the credit flow is still not at par with the national average. Lack of basic infrastructure like roads, transport facilities and power is the main impediment in the way of flow of funds in the region,' Thorat said.

(Sujit Chakraborty can be contacted at sujit.c@ians.in)