The Hindu Business Line : Union Bank assures credit of outstation cheques in 5 days

Union Bank of India will soon introduce a system whereby it will ensure assured credit of all out-station cheques on the fifth day, the Chairman and Managing Director, Mr M.V. Nair, said here on Monday.

Addressing presspersons, Mr Nair said the facility would be available in the bank's 760 branches that had been brought under core banking solution. The new facility will be introduced within a fortnight, he added. At present, the out-station cheques were taking at least a week or more to be credited.

Upgradation of operations

Mr Nair further said that the bank was emphasising on technological upgradation of its operations and had planned to increase the number of its CBS branches to 1,200 by March 2007. The bank, with a total of 2,090 branches across the country, plans to open 100 new branches during the current fiscal.

Of the existing branches, around 800 were situated in rural areas covering over 16,000 villages. Outlining the new initiatives of the bank, Mr Nair said the bank had set up 147 Village Knowledge Centres in the rural areas across the country. These centres disseminate information to farmers on weather, price of inputs and agricultural produce, improved cultivation and information on employment opportunities for the rural youth.

Self help groups

Formation of self help groups and linking them with the bank was another thrust area. The bank has already formed 74,000 such groups and the number will be increased to 1,00,000 by the end of March 2007. Further, the bank has adopted a multi-pronged strategy to bring more and more villages under the "100 per cent Banking Habit" umbrella. As regards the operations in Orissa, Mr Nair said the bank was striving to increase its advances in the State, particularly in view of new investments in the industrial sector.

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