The Hindu : Karnataka / Bangalore News : State achieves 100 p.c. financial inclusion

Online edition of India's National Newspaper
Friday, Dec 14, 2007
ePaper

Karnataka

Karnataka - Bangalore

State achieves 100 p.c. financial inclusion

Special Correspondent

Banks have extended credit
to 31,240 people
SLBC plans farmers training centre
in State

BANGALORE: Karnataka has become the first State in the country to achieve 100 per cent financial inclusion under the leadership of Syndicate Bank, which is the lead bank for the State.

Under financial inclusion, banks have opened 26.27 lakh “no frills” accounts and extended credit to 31,240 people, Syndicate Bank Chairman and Managing Director C. P. Swarnkar said at the meeting of the State Level Bankers Committee (SLBC) here on Wednesday.

“No frill accounts” are accounts with nil or low minimum balances. The requirement of a minimum balance in the past had prevented a vast majority of the population, especially in rural areas, from opening bank accounts.

Minimum balances prescribed ranged from Rs. 500 to Rs. 2,000. Financial inclusion is the initiative of the Reserve Bank of India, triggered by concerns that over 41 per cent of the adult population are beyond the reach of the banking sector.

Mr. Swarnkar said the exercise of opening the accounts had been completed in all the 29 districts of the State, except Bangalore city. The exercise in the city would be completed this month-end.

Mr. Swarnkar said the task of financial inclusion would be inconclusive if the banking sector did not meet the credit requirement of the households to take up viable economic activities based on the needs of each household.

“I have a strong feeling that all banks will take appropriate steps by preparing an action plan for implementation under the next phase of the financial inclusion programme,” Mr. Swarnkar pointed out.

The SLBC has decided to establish a farmers training centre in the State if the government provides 10 acres of land for the project.

The SLBC will pool the resources to construct the building and run the centre.

As per the Reserve Bank of India’s advice, he said three major banks had taken steps to set up ‘Financial Literacy-cum Credit Counselling Centre’ in Chitradurga (Canara Bank); Bijapur (Syndicate Bank); and Chikkodi in Belgaum district (Karnataka Vikas Grameena Bank) for providing counselling to farmers and others.

The sub-committee of SLBC had finalised the draft guidelines and circulated among the lead banks, Mr. Swarnkar said.

Union Minister of State for Finance Pawan Kumar Bansal, who commended the State’s achievement, said among the States likely to achieve full financial inclusion soon are Himachal Pradesh, Andhra Pradesh and Haryana.

The Minister has called upon nationalised banks and regional rural banks to scale up lending to six per cent of the total advances to minorities. The Centre has identified 103 minority concentrated districts in the country.

Printer friendly page
Send this article to Friends by E-Mail

Karnataka

News Update

Stories in this Section