SIVAGANGA: Union Finance Minister P. Chidambaram announced here on Friday that micro-financing schemes through bank agents, Non-Governmental Organisations and other organised set-ups would be implemented from next financial year (2006-07).

Inaugurating the country's first mobile ATM exclusively for rural areas and a new branch started by the Bank of India here on Friday, he said the system would bring to an end the usury by moneylenders.

Mr. Chidambaram said the Reserve Bank of India had sent circular to that effect to all banks. The Government had also started exploring the possibilities of involving post offices in the system.

Under the system, authorised agents of banks would collect deposits from the people and lend through banks.

The target groups would be small time businessmen. The agents would collect money daily. This type of financing, started at the Koyambedu market in Chennai, had become highly successful.

Congratulating the efforts of the Bank of India to start mobile ATM for rural people, Mr. Chidambaram said this would create awareness among the rural people to start bank accounts.

M. Balachandran, Chairman and Managing Director of the bank, who presided over the function, said the bank had crossed the business mark of Rs.1.50 lakh crores.

Out of its 2,610 branches, 1,200 were networked. Remaining branches would be networked before the end of December, 2006.

The rural mobile ATM would enable the villagers to draw cash at their doorsteps.

The General Manager, Krishnamurthy, Zonal Manager, A.W.M.J. Badsha, and others participated.

Earlier, the Finance Minister inaugurated an info expo campaign, an exhibition to highlight the achievements of UPA Government, at Karaikudi.

GDP growth

Speaking at the function, he said it was during the last 20 months the country had achieved success in all areas. The GDP was 7.75 in 2004-05. It would be between 7 and 8 per cent during the current year. The GDP would go up to 10 per cent within five years.

Mr. Chidambaram said when world leaders including the former U.S. President, Bill Clinton, had acknowledged India's tremendous growth some people in Tamil Nadu were asking what the Central Minister had done to Tamil Nadu.

Constructive development activities had been brought to Tamil Nadu like never before.

S. Ragupathy, Union Minister of Home, said the State Government was misleading the people with malicious propaganda.

Though the Central Government funded most of the schemes including Self-Help Groups, the State Government had been claiming that they were their projects.

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