The Hindu Business Line : 100% financial inclusion likely in Karnataka by Sept-end

Udupi, July 1 Bankers in Karnataka were committed to ensure that 100 per cent financial inclusion is achieved in all the districts of the State by September 30, according to Mr C.P. Swarnankar, Chairman and Managing Director of Syndicate Bank and Chairman of the State-level Bankers’ Committee.

He was speaking at the declaration of Udupi as 100 per cent financially included district here on Saturday.

‘No-frills account’

The financial inclusion programme is to be implemented in three phases. Under phase I, ‘no-frills’ accounts are opened and data on all eligible families are collected. He said 213 branches of 13 banks in Udupi district covered 2.08 lakh households in the district, and 18,094 ‘no-frills’ accounts were opened.

Stating that the first phase of financial inclusion has been completed, he said second phase of financial inclusion has begun. Under this, business models for individual families will be prepared. Based on the business models, suitable area-specific schemes will be prepared and implemented in phase III.

He said 11 districts in Karnataka have been declared as 100 per cent financially included district.

The process of financial inclusion has just begun, he said. Ms Devaki Muthukrishnan, Regional Director of the RBI, said that banks have been advised to allow limited overdraft facilities in the no-frills accounts without any collateral or linkage to any purpose.