Economy

New financial inclusion plan to kick off from August 15

KR Srivats New Delhi | Updated on March 12, 2018 Published on June 29, 2014

The novelty this time round is that one account has to be opened for a lady member of the household.

20-crore bank accounts to be opened in a year

The upcoming independence day—the first under new Modi-led Government-- will see India launch an ambitious new financial inclusion plan that would seek to bring banking services to 10 crore uncovered households.

The aspiration is to provide universal access to banking facilities within a span of one year and achieve financial inclusion for such 10 crore households by August 15, 2015.

The comprehensive financial inclusion plan--to be called Sampoorn Vittiyea Samaveshan (SVS)--will be launched at the hands of Prime Minister Narendra Modi, official sources said.

The main objective of the plan will be to open 20 crore new bank accounts within a span of one year--two bank accounts for each uncovered household.

The novelty this time round is that one account has to be opened for a lady member of the household.

The contours of this ambitious financial inclusion plan were discussed by Financial Services Secretary G.S.Sandhu at a meeting of Indian Banks Association (IBA) in Mumbai recently, sources said.

As per census 2011, only 14.5 crore out of the total 24.5 crore households in the country use banking services.

The uncovered households is therefore pegged at 10 crore.

The first phase (2014-15) of SVS will focus on providing universal access to banking facilities.

The second phase (2015-18) would include financial literacy programme, micro credit availability and creation of credit guarantee fund for coverage of defaults in such accounts and micro insurance.

Plans are afoot to open two bank accounts including one for a lady member in each of these uncovered 10 crore households.

INCLUSION SPEND

This financial inclusion plan is to be undertaken on a mission mode basis and involve spend of Rs 1,700 crore in a span of one year to accomplish the set targets.

While NABARD will bring in ₹ 1,000 crore (from a financial inclusion fund), the rest will come from banks.

It would involve appointment of 60,000 new bank mitras (business correspondents).

Under the new financial inclusion plan, every habitation will have access to banking services within 5 kilometres by September 2015 except hilly, tribal, forest and desert areas.

MONITORING SVS

A high powered panel headed by the Finance Minister will monitor the progress made and review the performance on a quarterly basis.

The other members of the panel are RBI Governor, Financial Services Secretary and Chairman of PFRDA, IRDA and chief executive of Indian Banks Association.

BANK MITRAS

Besides fixed pay, bank mitras will also be provided a variable pay for account opening, cash handling, micro insurance, micro pension, credit sourcing and recovery

There is also a proposal to give incentives to bank mitras.

Those bank mitras who complete three years of satisfactory service will be given higher weightage in bank recruitment of clerical cadre.

>srivats.kr@thehindu.co.in

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Published on June 29, 2014
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