The Hindu Business Line : Ernakulam achieves 100% banking habit status

Kochi March 25 Ernakulam has attained the status of 100 per cent banking habit district and this is the second district in Kerala to attain the distinction, the first being Palakkad.

Declaring the district as the State's second 100 per cent banking district, the State PWD Minister, Mr T.U. Kuruvila, said that the banks should make loans affordable to common men by simplifying security norms and provide loans on personal security.

"Accounts alone could not serve the poor, affordable short-term loans should be provided. Scheduled banks helped society from exploitations of the private banks in the country," he said.

Tremendous Growth

Presiding over the function, Mr M.V. Nair, Chairman and Managing Director of the Union Bank of India, said that completion of 100 per cent banking is a success of perfect co-ordination of various institutions such as local bodies and banks together.

More than 50 per cent of the population in the country is not included in the banking system. The benefit of the country's tremendous growth should not hang around a few but should be distributed among poorer sections of the society, he said.

In accordance with the Monetary Policy 2006-07 of the RBI, the State Level Bankers Committee in the State has advised the lead bank to prepare an action plan for Ernakulam district towards achieving 100 per cent financial inclusion by providing `No Frills' accounts.

Zero Balance

The branches are to ensure that each and every family in the district is brought into the banking fold and no family is left uncovered. The account can be opened with any bank and that too even with zero balance.

In Ernakulam district there are 15 block panchayats and 8 municipalities besides Kochi Corporation, comprising 117 villages. All these villages have now become 100 per cent banking habit villages.

The campaign has been successfully completed with the active co-operation of all the concerned departments and agencies with the lead taken by Union Bank, the lead bank along with other banks operating in the district.

The works were completed with the co-operation of 765 bank branches operating in the district, which is inclusive of the co-operative sector.

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