BANKS FIX MARCH DEADLINE TO COMPLETE FINANCIAL INCLUSION

Banks in Andhra Pradesh have set a target to wrap up coverage of financial inclusion plan across the State before March 2012.

Under the plan, all villages with a population of over 2,000 will be provided with banking services. So far, banks have completed implementation of the plan in 3,338 villages, against the target of 6,661 villages.

Andhra Bank has taken the lead in this regard with a total number of 1,060 villages allotted to it — it has, so far, covered about 400 villages.

The Indian Banks Association (IBA) has advised banks to cover villages with a population of below 2,000 also. At the national level, out of the total six lakh villages in the country, only about one lakh have been identified with population of over 2,000. The Reserve Bank of India has advised that banks should also make it a point to cover the surrounding villages with a population of over 2,000.

At a recent meeting of the sub-committee of the State Level Bankers Committee (SLBC), it was pointed out that reallocation of villages is still pending in some districts.

Latest statistics indicate that 14 districts in the State have declared 100 per cent financial inclusion through opening of No Frills account. These districts include Adilabad, Anantpur, Guntur, Bellore, Srikakulam and Vizianagaram. Another eight districts, including Visakhapatnam, Khammam and East Godavari have achieved financial including in the range of 80-95 per cent.

Under the RBI's model scheme for opening Financial Literacy and Credit Counselling Centres (FLCCs) by lead banks, the SLBC has informed that at present six FLCCs are functioning in the State, including four opened by Andhra Bank.

Meanwhile, the State Government is extending financial inclusion through implementation of the A.P. Smart Card project, which has created an electronic platform for the delivery of banking service even to far-flung villages. Out of the 22,767 gram panchayats in the State, enrolments have been completed in 22,087 and payments have commenced in 16, 424 panchayats. It has also taken an initiative to provide Unique Identification, Aadhaar, to every resident.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article2409423.ece