The Hindu Business Line : Thrust on IT-based financial inclusion

Once the final map is prepared and approved by the Reserve Bank, vendors of infrastructure for the IT-based financial inclusion drive will be shortlisted.

Our Bureau

Thiruvananthapuram, Sept. 8 IT-based financial inclusion drive is now being promoted in Kerala, which is among the few States to achieve‘total financial inclusion’ as early as in 2007.

This will be taken up as an extension of the total financial inclusion drive, according to the State Level Bankers’ Committee (SLBC).

DISTRICT PLANS

District-wise pilot projects have since been prepared for Kollam, Idukki and Wayanad where the respective Lead Bank has charted out a roadmap for implementation.

The Lead Bank for Kollam, Indian Bank, has reported that the groundwork has been completed and branch managers were being updated with details. Once the final map is prepared and approved by the Reserve Bank, vendors of infrastructure for the IT-based financial inclusion drive will be shortlisted.

In Idukki district, Union Bank of India has taken initiatives with regard to distribution of biometric and smart cards at Kattappana while State Bank of Travancore was spearheading the drive in Nedumgandam.

A proposal for taking up social security pension payments is also being actively pursued here.

In Wayanad, Canara Bank has conducted a special meeting with bankers and the NREGA officials.

Here, IT-based financial inclusion drive will be piloted in the Sulthan Bathery block in the first phase, before being extended to two other blocks in a time-bound manner.

The focus on IT-based financial inclusion drive comes in the backdrop of the Reserve Bank expressing doubts over the claims of total financial inclusion made by different States earlier.

A commissioned study revealed that although the SLBCs had declared several districts under 100 per cent financial inclusion, the actual inclusion achieved had not been to that extent.

Most of the no-frill accounts have remained inoperative due to various reasons, affecting the process of issuing of General Credit Cards (GCCs).

GCC/small overdrafts were meant to be provided as add-ons along with the no-frills accounts to encourage the account holders to actively operate the accounts.

Banks have since been told to provide banking services nearer to the location of the no-frills account holders through a variety of channels including satellite offices, mobile offices or business correspondents.

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