Business Correspondence with State Bank of India
Introduction to Financial Inclusion Programme
In rural India, 70% of the people do not have a bank account. There is no proper banking infrastructure even till today in many of the villages. To have access to bank people need to travel a lot of distance and above all the banking facilities are same for all sections of the people. This made bank an out of reach to the common man. Now the things are changing and there is a shift towards the common man through financial inclusion where banking facilities are now easily accessible and also the services are specially designed for a common man.
Financial Inclusion is a buzz word among the banking sector in India. It is a hard fact to digest that millions of Indians still do not have access to a bank account and other financial services. Financial Inclusion aims at making the banking services being available to the rural Indians through Business Correspondent model. Reserve Bank of India (RBI) along with all other nationalized banks is pushing to achieve the vision and objective of Financial Inclusion. The Government of India vision on this financial inclusion is that every citizen of India should have a bank account.
Our BC Operations with SBI
State Bank of India (SBI) known as the banker to every Indian is now aiming to reach everyone through total financial inclusion program under the supervision of RBI. Through this program SBI appoints national business correspondents on its behalf to take its services to the rural places through customer service points and mobile banking. All the transactions done at a bank can be done at these places through internet connectivity.
Role Of Blaze Trust As Circle BC
Blaze Trust has been selected as the first circle BC in coimbatore district to extend SBI’s Banking service to the Rural villages in the States of Tamilnadu and Pondichery. Ever since we have been appointed, we have been doing SBI’s Banking operations like Opening of No frill SB accounts, Introducing of loan products to the people, opening of OAP and MNREGS accounts, Collecting Deposits, Dealing with day to day cash transaction etc. We have started our operations from June’2011 and till date we have established 23 CSPs which are providing banking services to more than 10,000 rural Accounts holder.
Banking Services through our BC OutletsNo Frills Savings Bank Account
- Proof of Address is needed
- Proof of Identity is needed
- Passport size photos needed
- Filled in Account Opening form is needed
- Daily Transactions up to 10000 rupees per day can be performed
- Savings up to one lakh rupees can be done in one financial year
- An interest of 4% shall be paid for this account
Savings Bank Tiny Recurring Deposits:
- Mode of Operation is single
- Fixed period of deposit is 36 months
- Initial deposit amount is Rs. 10
- Deposits will be done via savings bank account.
- Interest rates would be applicable to STDR
- No monthly fixed installment. Any amount can be credited into the account.
- Multiple deposits of small amounts can also be made in a month
- Nomination is compulsory
- Premature payment facility available
Remittance/ Money Transfer Facility:
- Money from your account can be transferred any State Bank of India branch or kiosk in India.
- Maximum amount available for transfer is 10000 rupees per day
Loans / Overdraft Facility:
Blaze Trust offers OD facility to customers as a part of BC Operations. These facilities are offered to customers who maintain their SB accounts with us for a minimum period of 6 months. OD facility given to them based on their transactions and business volume.
- General purpose loan without any security
- Individuals having SBI tiny savings bank account and having transactions for a period of minimum six months and who have not availed any crop loan from any SBI branch are eligible for this loan
- Minimum Loan Amount is Rs. 1000
- Maximum Loan Amount is Rs. 25000 (four times of monthly average balance of six months in the savings bank account or four times the net income whichever is applicable)
- Interest of 6.25% is applicable
Loan products Introduced to Customers:
All our CSP outlets are located in rural villages where agriculture is the main source of income for the people. Depending on their need and based on their land hold, we facilitate agriculture loan in the form of agri loans, loan for tractors, KCC etc. We also through means of pamphlets and door to door canvassing, introduce them to various loan products of SBI like gold loan, vehicle loan etc. We also educate the need for savings through fixed deposit schemes, recurring deposit schemes etc. The responses to the various schemes have been encouraging.
Bank on Wheels- Delivering Banking at the Door Step:
As a part of financial inclusion, Bank on Wheels is a banking kiosk in a mobile van which goes to various rural villages as per the predetermined schedule to provide banking services to the rural Indians. Bank on Wheels is a sheer resemblance of technical brilliance and can be made a multi modal utility vehicle for all sorts of banking transactions.
In annur block, four villages were identified, and, among the four the one at Kattampatty is brick and mortar CSP outlet. Rest of the three villages viz Kariyamplayam, Kuppepalayam and Karegoundampalayam is covered by mobile van, as the scheme was introduced by the Bank to cover more number of villages. In order to suit the bank requirements, that is, to keep a system, UPS, Printer etc; we have modified the van for the bank operations. The enclosed photograph will show the improvements made and how customer friendly it is.
Some of the features of Bank on Wheels are
- Advanced Public Address System
- Wooden partition for secure banking operations to customers
- 3G Internet Connectivity, Laptops
- Web enabled secure banking transactions
- Printer connection for printing transactions receipts
- Customer friendly entry and exit
- Interior modified to suit customer convenience
Under the concept of Bank on Wheels the following financial services are available to the rural Indians at their villages.
- No Frills Savings Bank Account – Cash Deposits/Withdrawals
- Savings Bank Tiny Recurring Deposits Account
- Remittance / Money Transfer Facility
- Loans / Overdraft Facility
Other banking services related to rural welfare, Agriculture such as crop loans, kisaan cards, Dairy loans so on are also provided along with the above mentioned Other banking services related to rural welfare, Agriculture such as crop loans, kisaan cards, Dairy loans so on are also provided along with the above mentioned services.