The public sector Allahabad Bank is putting its focus on urban financial inclusion, a move likely to expand its ‘base’, and, scope of financial inclusion in the urban areas of the country, said a senior official of the Bank here on Monday.
Urban financial inclusion would encompass bringing under banking net the un-banked small retail customers in urban areas.
“It would cover small-time hawkers, rickshaw pullers and migrant labourers, who mostly do not have permanent addresses and find it difficult to open bank accounts,” said J P Dua, CMD, Allahabad Bank.
The Bank, according to Dua, would open no-frills accounts for the target category of consumers, wherein they will be able to deposit their money. Later, the Bank would also offer them more financial products, such as credit facility.
“We formally launched this project on July 16 in Delhi and intend to bring other areas in this project,” he added.
Dua added the Bank had earlier been offering this product in a rather informal manner. All know your customers (KYC) norms would be followed by the Bank for the urban financial inclusion project, which would be spearheaded by its respective branches in their 500 metre periphery.
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Allahabad Bank also operates 1,159 ultra small branches in Uttar Pradesh under its financial inclusion programme in the lead districts in the state. Under this concept, a Bank official visits such branches once a week to facilitate financial services to the rural populace.
The Bank has been allotted 13 lead districts in UP spanning 1,200 villages. Under the Reserve Bank of India (RBI) mandate, the lead banker has the responsibility of coordinating with the government agencies and other banks for financial services and inclusion in that district.
The Bank is also targetting to open 250 more branches in India this financial year to add to its current tally of over 2,500. UP already has 756 branches and 33 more would be added.
To a Business Standard query on the next credit policy review by the RBI, Dua said there was ample liquidity in the system. “RBI has the task of balancing growth and inflation.”