The Hindu Business Line : Banks told to open no-frill accounts for flood-affected

The Regional Director of Reserve Bank of India, Mr B. Shrinivas, has asked the banks to open no-frill accounts for the flood affected people so that relief amount can be passed on to them quickly.

A press release by the Dharwad-headquartered Karnataka Vikas Grameen Bank (KVGB) said here on Saturday that Mr Shrinivas said this while addressing the officials of the bank in Dharwad recently.

Mr Shrinivas advised the banks to extend overdraft facility of up to Rs 500 and general credit card facility of up to Rs 25,000, especially to very small farmers and agriculture labourers having no-frill accounts, who have been affected by floods.

Banks were advised to come out with special housing schemes with low interest rates for the flood-affected people.

Stating that the grim situation is likely to push the flood-affected people to the money lenders, he asked the banks to think of demand loans to farmers.

The RBI has planned to bring the entire population within the banking fold by 2015. Villages and hamlets with population even below 2,000 should also get banking facilities through banking facilitators.

Mr Shrinivas said that branch licensing policy is relaxed to encourage commercial banks to open branches at rural and semi-urban centres.

Mr K.P. Muralidharan, Chairman of KVGB, apprised him of the performance of the bank and its social involvement. Mr Muralidharan also briefed him about the relief extended by the bank to flood-affected people, the release added.

More Stories on : RBI & Other Central Banks | Natural Calamities | Karnataka

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