Ultra small banks open new vistas of development in remote villages

Bhopal: Due to absence of access to banks, people of thousands of villages had to travel 25 to 30 kms to their nearest town or city to avail banking services. Now, setting up of ultra small banks has opened new vistas of development in such villages. Reserve Bank of India and Union Finance Ministry have hailed this successful model of Madhya Pradesh.

Model of financial inclusion was formulated in Madhya Pradesh last year to provide banking services and benefit of financial inclusion in villages. Of 52 thousand villages in the state, 14 thousand 767 villages where no financial institution existed within radius of 5 kms were selected for the scheme. These villages were classified bank-wise and district-wise for providing banking facility under financial inclusion. Every bank planned to open its branch in such village under its shadow area. Work is underway to open 3,500 ultra small banks by various banks.

A room is being given in every Gram Panchayat building for ultra small bank.

A youth Dinesh was appointed business correspondent by Union Bank at village Pathrad in Mandleshwar block of Khargone and assigned him responsibility of ultra small banks. Through Dinesh’s efforts, people of Pathrad and a number of adjoining villages opened their accounts in this bank. Now, villagers are availing all banking facilities in their village smoothly. Amounts of old age, widow, destitute pensions, assistance under Janani Suraksha Yojana and scholarships are now being deposited directly in beneficiaries’ accounts in ultra small bank.