RBI to set up model villages

The Reserve Bank of India (RBI), Kanpur, has proposed setting up of around 20 model villages across Uttar Pradesh (UP) and Uttarakhand in a phased manner by the end of year 2010. 

These villages will be used as a successful instance of financial inclusion and literacy for future campaigns while convincing skeptics about the benefits of modern banking.

The project has especially focused on the extremely backward villages to provide maximum benefit whereby the villagers will be provided easy financing options for cottage and agro-based industries apart from opening of zero balance accounts in every household.

The bank has also included eight villages from Uttarakhand in the programme. The bank has already organised awareness and financial literacy camps in these villages. A special basic line survey officer has also been appointed to supervise and regulate the programme implementation though various private and public sector banks. 

Apart from this, a 5-member committee has also been constituted to chalk out effective plans .