The Hindu : Tamil Nadu News : Financial inclusion scheme in three more districts

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Thursday, Jul 12, 2007
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Tamil Nadu

Tamil Nadu

Financial inclusion scheme in three more districts

Special Correspondent

RBI Governor Y.V. Reddy agrees to the request made by Karunanidhi at their meeting on Wednesday

Farmers to get Kisan credit card
Programme to go on stream in three months

— Photo: S. R. Raghunathan

EXTENDING GREETINGS: Reserve Bank Governor Y. V. Reddy with Chief Minister M. Karunanidhi in Chennai on Wednesday.

CHENNAI: Responding to a request from Chief Minister M. Karunanidhi, Reserve Bank of India Governor Y.V. Reddy has agreed to extend a financial inclusion programme to Kanyakumari, Tiruvarur and the Nilgiris.

Dr. Reddy had made a courtesy call on Mr. Karunanidhi as he was in Chennai for a RBI meeting.

The State Government used the opportunity to seek support for its financial inclusion programme, which is aimed at making sure that everyone in a district has a bank account.

The programme has been implemented in Cuddalore district.

Three districts

Officials told The Hindu that the State had narrowed down the choice to three districts, considering the fact that they had the largest number of persons from minority and Scheduled Caste communities.

Since the project had been successfully implemented in Cuddalore and has been functioning well, the Government felt that this would be one of the ways to bring about financial inclusion in the State.

It expected the project to go on stream in the three districts in about three months.

Range of facilities

Apart from entitling people to hold a no-frills account, it would enable them to have access to a range of facilities.

For instance, farmers would be able to get a Kisan credit card, and access to micro-credit would be easier for self-help groups, an official said.

Nod for proposal

Dr. Reddy agreed to a proposal to extend the operational area of its regional rural banks to the entire State.

The banks have the entire portfolio like the other commercial banks but operate on much leaner budgets.

Credit deposit ratio

The RBI Governor was happy with the financial management of the State and told the Chief Minister that Tamil Nadu stood first in Credit Deposit ratio in the country.

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