The Hindu : Front Page : Formal banking system and services for the poor

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Friday, Aug 25, 2006

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Formal banking system and services for the poor

L. Renganathan

A pilot project to provide direct accessibility

KARUR: A pilot project to provide the poor a direct access to formal banking system and services, including grant of need-based credit to beneficiaries, is being launched in Karur district.

A total of 101 villages will be brought under the ambit of the project named "Financial Inclusion."

The project will cover all rural and semi-urban branches of various banks in the district.

Each branch will select one service area village preferably with strength of 500 households, which will be covered under "no frills account" (without and with minimum balance in individual savings bank account) as per existing guidelines.

First, a survey would be conducted to ascertain the credit needs of the families and then an action plan would be prepared for implementation of the project.

Demographic particulars

The action plan would incorporate study on demographic particulars, data on small and medium farmers, agricultural labourers, present status of the people's access to formal banking, potential for opening no frills accounts, credit needs, drafting integrated village level credit plan and devising management information system for close monitoring of the progress of financial inclusion scheme, the Deputy General Manager, Indian Overseas Bank, State Level Bankers' Committee, S. Elangovan, said here on Thursday.

Beneficiaries would have access to fruits of government-sponsored schemes, social security options and pensions even as special emphasis would be given for formation of self-help groups and joint liability groups among members of selected villages.

Credit linkage would be extended on priority basis, said the Lead District Manager, K. Chandrasekaran.

Karur is the second district in the State after Cuddalore to get the financial inclusion project through the Indian Overseas Bank.

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