K'taka set to achieve 100% financial inclusion

Karnataka is set to become the second state in the country to achieve 100 per cent financial inclusion, by September 2007. Kerala was the first state in the country to achieve the target by June-end this year.

Said C P Swarnkar, Syndicate Bank chairman, and convenor of State Level Bankers' Committee: "The banks in Karnataka have made all efforts to achieve 100 per cent financial inclusion by September 2007."

Financial inclusion means the delivery of banking facilities or services to all people "in a fair, transparent and equitable manner at affordable cost". Financial inclusion has the potential to improve the financial condition and standards of life of the poor and the disadvantaged.

In Karnataka, Gulbarga was the first district to achieve 100 per cent financial inclusion, on December 31, 2006. Based on the experience gained in Gulbarga, a uniform strategy was adopted for achieving a 100 per cent financial inclusion in rest of the state.

Accordingly, as of April-end nine other districts achieved the target of 100 per cent financial inclusion through their lead banks.

They are Kodagu, Chikmagalur (Corporation Bank), Chamarajanagar (SBM), Davanagere (Canara Bank), Haveri and Mandya (Vijaya Bank), Bagalkot (Syndicate Bank) and Koppal (SBH).

These districts were assisted by seven lead banks by opening no-frills accounts including SB accounts.

Finance Minister P Chidambaram had announced in the Budget of 2005-06 to achieve financial inclusion and subsequently, the RBI had issued direction to all the banks in this regard.

Syndicate Bank is now ready to declare Udupi as 100 per cent financial inclusive district, its second in the state, while it is gearing up to complete the 100 per cent inclusion in Dakshina Kannada district by end of June.