The Hindu : Tamil Nadu / Chennai News : DMK instrumental in bank nationalisation

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Wednesday, Nov 26, 2008
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Tamil Nadu

Tamil Nadu - Chennai

DMK instrumental in bank nationalisation

Special Correspondent

I suggested the move in 1969: Karunanidhi

— Photo: R. Ragu

WELL DONE: Chief Minister M. Karunanidhi presenting an award to M.S. Sundara Rajan, Chairman and Managing Director, Indian Bank, for giving loans to most number of self-help groups, at a function in Chennai on Tuesday. Local Administration Minister M.K. Stalin is in the picture.

CHENNAI: Chief Minister M. Karunanidhi on Tuesday said the Dravida Munnetra Kazhagam government was instrumental in the Centre’s decision to nationalise 14 major banks in 1969.

Participating at a function organised here by the Rural Development Ministry to honour the best self-help groups and panchayat-level federations, he said that at the Chief Ministers’ meeting convened by the then Prime Minister Indira Gandhi in 1969, he had suggested nationalisation of major banks to help the poor and the lower middle-class people to get finance at a subsidised interest. At the meeting, he had said that the banks’ money belonged to the people, and it should be utilised for their welfare. So he could proudly claim that the DMK was the brain behind the nationalisation of banks. Only after the nationalisation, did banks become accessible to the poor and the needy.

It was the then DMK government that started self-help groups in Dharmapuri district, with the help of banks, in 1989. The movement now registered a phenomenal growth. He said thata as the SHGs were run by women, they were functioning efficiently, and the loans were being repaid promptly. He complimented Local Administration Minister M.K. Stalin and his team of officials on the success of the SHGs.

Presiding, Mr. Stalin said that to encourage the well-functioning SHGs and panchayat- level federations, the government announced ‘Manimegalai Awards.’ Every year five best panchayat-level federations were given Rs. 1 lakh each, and the 10 best SGHs were given Rs. 50,000 each at the State level. Likewise one panchayat-level federation and three SHGs chosen at the district level were given Rs.50,000 and Rs.10,000 each.

He said there were 3.78 lakh SHGs in the State with a membership of 60.63 lakh. In the past two-and-a-half years, more than 60,000 SHGs were formed, and about Rs. 2,000 crore were given in loans to the SHGs.

Chief Secretary K.S. Sripathi said the growth of SHGs in the past 10 years was phenomenal, and their repayment rate was 99 per cent.

Chennai Mayor M. Subramanian charged the previous government with having utilised the SHGs for political purpose. But the present government was using the groups to make women stand on their own.

Indian Bank Chairman M.S. Sundera Rajan said the scheme started in 1989 had created a silent revolution in rural areas, and Indian Bank played a pivotal role in it.

S.A. Bhatt, Chairman of Indian Overseas Bank, said the loan target of Rs.1,600 crore for the SHGs this year would be achieved.

Mr. Stalin distributed revolving funds to 3,000 SHGs.

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