Money & Banking

Andhra Bank, SBH in financial inclusion drive

G Naga Sridhar Hyderabad | Updated on March 16, 2011 Published on March 16, 2011

Andhra Pradesh is set for a major drive for financial inclusion by two of its leading banks, Andhra Bank and State Bank of Hyderabad (SBH).

“Of the 1,144 villages allotted to Andhra Bank under financial inclusion plan (FIP) target for March 2012, Andhra Pradesh alone accounts for 1,060 villages while the rest are outside the State,” a top official of Andhra Bank told Business Line here.

The number of beneficiaries to be covered under the plan is six lakh, he added.

Andhra Bank had a target of covering 500 villages and 1.50 lakh beneficiaries under the FIP for March 2011.

SBH's PLAN

SBH is also taking up its financial inclusion project in 1,102 villages in two phases, according to its Managing Director, Ms Renu Challu.

It will be covering 782 villages with a population of 31.31 lakh before March 31, 2012.

The implementation of FIP is being conducted through point of sales (POS) model facilitating both enrolment and operations. The bank is partnering with Integra Micro Systems Pvt Ltd for technology solutions.

“We are also implementing Smartcard projects in six districts of Andhra Pradesh,” Ms Challu said.

Adilabad and Nellore districts are under ‘One District – One Bank' model while Warangal, Medak, Karimnagar and Mahaabubnagar are under ‘One District – Many Banks' model.

Even in Karnataka, SBH is implementing the Smartcard project in two districts Gulbarga and Yadgir. In all, it will be covering 2,529 Gram Panchayats in Andhra Pradesh and Karnataka.

Till recently, it had enrolled 8.71 lakh beneficiaries and distributed 2.88 lakh cards, besides disbursing Rs 3.74 crore through smart cards during the current financial year.

Following a Memorandum of Understanding entered into with the Unique Identification Authority of India (UIDAI), the bank is currently undertaking enrolment in the twin cities of Hyderabad and Secunderabad, and Mahabugnagar district. This might be extended to other districts as well soon.

Published on March 16, 2011
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