The Hindu : Andhra Pradesh News : Meeting credit needs of low-income groups

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Saturday, Jul 21, 2007
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Andhra Pradesh

Andhra Pradesh

Meeting credit needs of low-income groups

Correspondent

Zero balance bank accounts to be opened

General purpose credit cards to be issued by March
Banks to extend credit basing on repaying capacity

Kakinada: Under the financial inclusion scheme, all households in the district will have bank accounts opened by December for meeting their credit needs, according to district Collector M. Subrahmanyam.

Addressing the district consultative committee of bankers here on Friday, he said several neglected sections that were hitherto excluded from financial services of formal financial institutions would now be brought into the fold.

Beneficiaries

People living in remote rural, tribal areas, semi-urban areas, urban slums, people in lower segments, tenant farmers, marginal farmers with smallholdings, SC, ST and minority people with little means would now have access to banking facilities.

The Collector said that after detailed survey of the households, zero balance bank accounts would be opened and later general purpose credit cards would be issued.

Basing on their requirements, credit facility would be extended to the households through these cards, subject to the fixed ceiling that is decided depending upon their repaying capacity. The Collector said that issuing of cards would have to be completed by March.

Lead Bank Manager A. Shanmukhachary said the basic objective of financial inclusion was to bring people out of non-institutional framework and help them fight poverty.

Andhra Bank DGM Y. Prasad said that banks would be judicious in extending credit .

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