The Hindu Business Line : Bank adopts village to rid it of moneylenders

Kochi, Feb. 15 The South Indian Bank has adopted Meloor village in Thrissur district of Kerala as a moneylender-free village on a pilot basis. The project was inaugurated by Mr S. Ramaswamy, Regional Director of the Reserve Bank of India and the bank Chairman Dr V.A. Joseph presided over the function.

The main objective of the pilot project is to replace the non-institutional rural credit mechanism of private lending, with the help of self-help groups (SHGs) and also through direct lending by the bank. Under this initiative, SHGs will act as an extension of the bank to reach out to the villagers in even the remotest locations, a press release from the bank said.

Inclusive banking

Speaking at the function, Dr Joseph said that the social objective of the bank’s founding fathers — to liberate the small traders from the clutches of money lenders — are being realised through the project. This is also an attempt by the bank, in compliance with the directions of the Government of India and the RBI, to adopt inclusive practices in the sense of extending banking products and services to un-banked areas as well as to the relatively less affluent sections of society.

The South Indian Bank was the first bank in the private sector to undertake such a project, he said.

Mr Ramaswamy said that the objectives of extending banking products to the less affluent members of society would result in greater inclusive banking and inclusive development among the participants of the project.

More Stories on : Credit Market | Rural Development | Kerala

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