Axis Bank, which is implementing ‘One District – One Bank Model' on pilot basis in Dharwad district on behalf of State Level Bankers' Committee (SLBC) to execute the Union Government's Electronic Wages and Benefit Transfer (EWBT) scheme, has offered to take over and roll out all the financial inclusion (FI) branches allotted to the district.
Under FI, according to the RBI guidelines, banking services needs to be provided to villages having population of over 2,000 people. In Dharwad district, about 77 villages have been identified to open a bank branch or provide banking services through business correspondents.
Axis Bank, which is currently implementing Union Government's EWBT schemes such as social security pension (SSP) and National Rural Employment Guarantee Act (NREGA), in the district and also having created good workable technology network in the district is planning to leverage it to roll out FI branches.
“Our bank at present has only two branches (one each in Hubli and Dharwad city). We are planning to leverage our network created/laid from district headquarters right up to gram panchayat level to open and handle all the FI branches in the district. Hence, we have approached District Level Review Committee (DLRC) for approval,” said Mr Prakash M. Morab, Deputy Manager – government business at Axis Bank.
At present, Axis Bank for EWBT has created a base bank at Dharwad and has hired district co-ordinators at block (taluk) level and customer service providers (CSP) at gram panchayat level. The taluk level co-ordinators monitor performance of customer service providers (CSP) at gram panchayat level.
In Dharwad district, of the 77 FI branches selected in Dharwad district, regional rural bank Karnataka Vikas Grameena Bank has been allotted 32 branches, Vijaya Bank 17, Syndicate Bank 12, ING Vysya 4, IOB 3, Corporation Bank 2, Canara Bank 2, SBI, Karnataka Bank, BOB, CBI and UBI one each.
“FI roll out or implementation in Dharwad district has been tardy so far and as on December 31, 2010, only five branches have been opened. Corporation Bank and Syndicate Bank have opened in two villages each and Vijaya Bank has opened in one village. Other banks are either in the process of identifying or appointing technology partner or are busy identifying personnel to run the branches,” said Mr G.S. Basavarajappa of Vijaya Bank and Lead District Manager - Dharwad.
“Keeping the Axis Bank offer in mind and for creating a road map for opening remaining FI branches, we have asked all the public sector banks and private banks which have been allotted FI branches to revisit their plan/proposal and take a decision on Axis Bank's proposal. Once their decision is conveyed to us we will follow it up for discussion at SLBC and help us complete the roll-out,” he added.