The Hindu Business Line : SBI's initiative a big hit among jail inmates

Pune June 3 She was pronounced guilty of murder seven years back and since then 42-year-old Madhu has been doing all the routine cleaning, sweeping and such other work in the prison. But she now looks forward to producing finest quality embroidery on designer wear for consumption in the domestic and overseas market.

Madhu, serving a life imprisonment, is a member of one of the three self-help groups (SHG) formed by the State Bank of India in the female prison of Yerawada Jail, on the outskirts of Pune.

The bank has formed three groups — Savitri, Jijau and Mahalakshmi — with about 12 members in each group.

"As the prisoners in jail cannot carry the banking functions on their own, we have included two women jail guards and a member of an NGO called Janeev Samajik Sanstha in each of the group for operating accounts on behalf of the prisoners," said a senior State Bank official.

The inmates of the jail feel that the group concept has created a bond and a spirit of healthy competition among them. "We now sit together and discuss our ideas freely," said a 30-year old beneficiary.

Training session

The bank has approached a private trading and manufacturing firm to train the group members in embroidery. The firm (unwilling to be named) conducted an eight-day training session for the inmates for which it was paid Rs 25,000 by the bank.

"We will provide them with sarees and dress materials to be embroidered and also give them the necessary materials, they will have to stitch on the designs provided by us. We will be paying them anywhere between Rs 35 and Rs 100 for the work depending upon its intricacy," the manager of the firm said.

Thirty-two-year-old Rupa (name changed) is happy with this new initiative taken by the jail authorities and the bank. "I have always loved doing art-work. Now with this training I can do what I have always wanted to," says Rupa.

Moreover, she feels that the training will help her earn a good source of income once she is out of the four walls of prison.

The order will fetch them higher income than what they manage to earn now by cooking, cleaning and performing other such tasks in the jail. "We now get Rs 12-17 per day by doing these routine tasks but with this new order we are hopeful of earning more," said a beneficiary.

Contrary to the popular belief that SHGs are extended micro-credit by the bank, these new groups will not be credit-linked with the bank now.

"We have opened savings bank account for the three groups with the Bund Garden branch of SBI in Pune. Their venture does not require loan as they will be provided with all the material and will be paid for their work. But the bank will consider providing them micro-finance when they will require it," says the bank official.

Each of the three groups has saved a sum of about Rs 12,000. Mr Rajendra Dhamane, Superintendent of the jail says, "They have been saving Rs 100 per head for the past 10-11 months. This initiative has made them self-reliant and inculcated the spirit of saving in them. The money will also act as a source of rehabilitation."

The concept of `financial inclusion' that banks have been talking about has achieved a new high and this time by scaling the prison walls.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
China's smart strategy of investing in US private equity

Govt formulates scheme to help exporters hedge

Dollar to decide gold price direction

Receding inflation softens bond yields

Andhra Bank raises rates

TMB, UAE Exchange Centre tie up

Rupee in the driver's seat!

SBI's initiative a big hit among jail inmates