The Hindu Business Line : Indian Bank achieves financial inclusion target

The project has resulted in bringing 1.25 lakh new "no frill'' account holders into the banks' fold. Besides, the bank has provided overdraft facilities to 15,000 people. The project also involves providing health insurance coverage to 2.8-lakh members of self-help groups.

Indian Bank's Chairman and Managing Director, Dr K.C. Chakraborty, said, "All the families have been provided with a bank account. Only those families who did not want one are excluded."

The Union Territory has now become the first region in the country to become fully covered under the banking inclusion programme. Hence, Indian Bank has become the first bank in the country to achieve full financial inclusion in an entire Union Territory/State. The original target for financial inclusion was by December end this year. However, the PSU banks had stepped up the competition among themselves to complete the banking inclusion well ahead of target. With stepped up competition, banks had intensified coverage of the population under the programme.

Andhra Bank is expected to complete the financial inclusion programme in Srikakulam district of Andhra Pradesh only by the end of this month. State Bank of Travancore has completed the target in the district of Palakkad, Kerala.

The Puducherry region has a population of over one million people. According to the banking inclusion programme guidelines of the Reserve Bank of India, every family is expected to have a bank account. Financial inclusion allows banks to increase their farm advances. Although such advances are made at 7 per cent, banks currently earn a subsidy from the Government of 2 per cent, taking the average yield to 9 per cent.