FINANCIAL INCLUSIONA way towards Inclusive Growth Presented by : Pravat Kumar Behera Bikas Ranjan Nayak
Inclusive GrowthThe ‘inclusive growth’ as a strategy of economicdevelopment received attention owing to a risingconcern that the benefits of economic growthhave not been equitably shared.Inclusive growth as a new economic strategywhich takes into account the betterment of everysection of the society.
Scope of Inclusive Growth• EDUCATION• HEALTH• FINANCE• ENVIRONMENT
FINANCIAL INCLUSIONMeaning: Financial Inclusion is the deliveryof banking services at affordable costs tovast sections of disadvantaged and lowincome groups includinghouseholds, enterprises, SMEs, traders.
INITIATIVES TAKEN BY RBI• SIMPLIFIED BRANCH AUTHORISATION• RELAXED KYC NORMS• “NO-FRILLS” ACCOUNTS• GCC• BUSINESS CORRESPONDENTS• CBS IN RRBs• MOBILE BANKING• FIF AND FITF
BANK PROFILEBank formerly known as United Commercial BankIncorporated on 6th of January 1943It was vision of Mr. G.D BirlaThe bank has headquartered in Kolkata.It got nationalized in the year 1969.In 1985 the name of bank was changed to UCO Bank.
Reasons for Financial ExclusionBasically, Financial Exclusion has two barriers, viz., Demand, and Supplyside barriers. The barriers can be defined as follows :Demand Side Barriers :1. Complexity :2. Lack of Literacy :4. Human Capacity :5. Affinity for the informal sector :6. Fear of getting into debt :7. Uneconomical Production System :
Supply Side Barriers:1. Identification Problem :2. Outreach Issue :4. Financial Terms :5. Bankers Approach :
Initiatives taken by UCO Bank for 100% Financial Inclusion:1. Allocation of villages/wards to the various banks operating in the District for taking responsibility of ensuring 100% financial inclusion.2. Surveying the villages/wards by the bank branches with the help of Government / Panchayet/Municipality officials to identify the families having no bank account.
3 Mass campaign for awareness among the people about the programme jointly by banks,Panchayets, Municipalities, Govt. Departments etc. This is very important for achieving 100% financial inclusion. Unless people, mainly in rural areas are aware about banking facilities the desired goal will not be achieved. Rural ‘Mela’ and electronic-media (Radio & Television) may be used very effectively.
4. Opening of hassle-free bank accounts i.e No Frills Account.5. Issue of General Credit Card (GCC).6. Circulating all the decisions along with necessary guidelines to Bank branches/Government Departments/ Panchayets/ Municipality officials for proper implementation of the programme.7. Presently it has a network of over 2000 branches, over 370 ATMs, and 35 regional offices across country as well as in Singapore and Hong Kong
• NRI Banking• The Bank also participated in the development of women and children in rural areas under the DWCRA scheme.
Conclusion :• A single mobile infrastructure with complete Bank-on- wheels• Banking services like customer enrolment through biometric ATM, issuance of non-personalized Debit Cards, receipt and payment of cash, printing of Passbook, collection of cheque, remittance facilities through DD / RTGS / NEFT, collection of loan applications and credit disbursal etc. made available at the doorstep of customers• 24 Bank on Wheels has already been started functioning