The Hindu : Front Page : Coimbatore marks ‘total financial inclusion’

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Wednesday, Apr 09, 2008
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Coimbatore marks ‘total financial inclusion’

M. Soundariya Preetha

It involves at least one member of every household opening a savings account

— File photo : M. Periasamy

Canara Bank’s campaign vehicle on its schemes and activities, including financial inclusion

COIMBATORE: Coimbatore is among the districts in the State that have achieved total financial inclusion. Under the guidance of the lead bank, which is Canara Bank, a campaign began on July 1, 2007 and it was completed by February.

Programme

The financial inclusion programme involves at least one member of every household in the district getting to have a savings bank account.

According to an official of the lead bank, banks facilitate the process of opening accounts, even with zero initial balance.

Awareness

However, no household is compelled to open an account. The whole process creates awareness among consumers on banking.

As many as 42 nationalised, private sector and new generation banks participated in the campaign and over 1.12 lakh households have opened new accounts.

Nearly 10.40 lakh households were surveyed and it was found that members of 6.78 lakh of them had accounts.

About 2.50 lakh of them were unwilling to open accounts and the rest were covered under the programme.

No-frills accounts with zero initial balance were permitted. The 206 branches that participated in the campaign mobilised savings of over Rs. 2.40 crore.

Account operation

The official adds that account operation is an option and that it can be encouraged in the second phase.

With the opening of an account, they can start using other banking facilities such as loans.

Some banks have gone ahead with this.

They have distributed general purpose credit cards or extended loans.

“Customers should slowly start using the other banking facilities,” he says.

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