We have a good customer base in rural areas

TE: What according to you are the reasons for vast unbanked population in India?

Unbanked population (Financial Exclusion) is a global phenomenon. It is estimated that over two billion people are currently excluded from access to financial services globally. In most developing countries, a large segment of society particularly low-income people, have very little access to both formal and semi-formal financial services. The situation just about 40% of the population across the Country have Bank accounts.

The nature and form of exclusion and the factors responsible for could explain the phenomenon. Some of the factors are: Gender issues, Age factor, Large identity, Limited literacy-Lack of awareness among the public and banking habit, Place of living, Psychological and cultural barriers, Bank income, Type of occupation, Attractiveness of the product etc; Majority of financial excluded groups are from poor, socially underprivileged, disabled, old as well as children, women, uneducated, minorities and migrant population. The only way to include the leftover segment to banking stream is to reach them at their place of residence or work i. e, by providing doorstep banking through cost effective technology drive model which will provide desired result.

TE: Recently, FM directed bank to provide banking facilities to areas having population more than 2000. It seems that banks are to do only because of their political Masters?

No. Being a business organization, our aim is to bring more and more customers into our fold, thereby not only the untapped potential from the rural areas. This is more important in the context of Indian bank as we have a good customer base in rural areas who are the core customers of the Bank Financial inclusion has opened one more avenue to bring the untapped customer to Bank's fold with less cost by using latest technology.

TE: Do you think it is a huge untapped business opportunity for bank. Then why are the banks slow in talking up financial Inclusion?

The financial Inclusion process which the banks are following now is mainly based on Information and Communication Technology (ICT). In this, various region specific problems are there like availability of telecommunication network, motorable roads etc. Since the ITC enabled smart card based BC with reliability and integrity for all the Banks throughout the country is not an easy job as the reputational risk of the bank is involved in this. For every acts of omission and commission of the BCs, the concerned Bank is responsibility as the BCs are servicing the customers on behalf of the Bank. However, due to active support from Govt. of India and RBI, things are happening very fast. Our Bank has covered 1010 villages in various States through engaging the BCs and various other models like Banking provide banking services centre (BSC) AND Mobile van. We are planning to provide banking services in all the villages with population 2000 and above allocated to our Bank, well ahead the schedule of March, 2012 stipulated by RBI.

TE: In India, you must be aware only 40% of population has Bank account. Do you think this is a big achievement?

Certainly not. However considering the position of the branch nationalization in 1969, many villages are provided with banking services as on date have access to banking services as on date have access to banking services, 58% of farm household and 78%of non-farm households in rural India do not have access to banking depend on informal sources of savings.

Out of 89.3 million farmer household, about 45.9 million (51.4%) don't have access to credit either form credit institutions of form people with life insurance cover is as low as abysmal 0.6% Only 2% people have access ATN cum debit card. There are about 403 million mobile users but 46% of them i.e. 187 million do not have Bank account. If the financial sector were to contribute more fully to inclusive economic growth, it must reach out to the people at lowest atrata  of the society.

TE: What has been your Bank's effort as far as Financial Inclusion is concerned?

Indian bank has started its financial Inclusion effort since 2005, in UT of Puducherry. Nofrills accounts were opened for all GCC were sanctioned of to eligible account holders. The Financial Inclusion Project was extended last to entire Union Nadu, Andhra Pradesh and Kerala.

After experiencing the success in rural Financial inclusion effort, the Bank has set another milestone by Financial Inclusion in Asia's largest slum Dharavi. Dharavi located in the heart of the country's financial capital had no bank branch and is inhabited by vast majority of the population, mainly migrant workers who have no access to any formal financial service. The bank has opened a branch with CBS facility and ATM. The branch also facilities reliable money remittance facility to the migrant labourers. As the number of transactions through ATM is very high, the Bank service. In order to meet the needs of the SHGs, 38 exclusive Microfinance branches have been opened by the Bank in various metro and urban centers. A total of Rs. 602.16 crore covering 31510 SHGs have been disbursed by the Microsate  Branches during 2011-12. Total outstanding advances of these Branches as at the end of March 2011, is Rs.667.57 crore covering 53192 SHGs.