He pointed out that banks did not have many branches when they were nationalised in the 1970s and that the pace of opening branches was quite rapid now.
"We have told all banks to open branches and they will do so," he said.
Chidambaram said every individual with earning capacity has the right to avail of banking services. Banks will ensure that all those eligible to receive loans get them, he said.
The minister said the reason banks were being asked to start branches in rural areas was because they were needed for people to start their own ventures or get into education or business.