SEWA Bank to open 1st ATM on Wednesday

Ahmedabad-based Shri Mahila Sewa Sahakari Bank (SEWA Bank), a co-operative bank working for the economic upliftment of poor and illiterate women, will inaugurate its first automated teller machine (ATM) in Ahmedabad on Wednesday.

SEWA Bank founder Ela Bhatt will inaugurate the ATM at the bank's premises. Over 200 women have already been given ATM cards.

Started in 1974, with 4000 women contributing Rs 10 each as share capital, the bank today has over two lakh members, with a deposit base of around Rs 62 crore. SEWA Bank has a branch and four extension counters, all in Ahmedabad.

Bank officials said the Reserve Bank of India granted permission to open the ATM about 15 days back. Even though most of the members are illiterate, they have shown their willingness to operate their accounts using ATM cards.

Shri Mahila Sewa Sahakari Bank, a separate bank of poor, unemployed women workers, was established in 1974 at the initiative of 4000 self employed women workers, especially vendors, who required cheap and easily available credit to earn a livelihood.

Although the Ahmedabad based Self Employed Women's Association (SEWA) acted as an intermediary and self appointed regulator for repayment of loans that these workers got from nationalised banks, the members faced a number of practical difficulties, especially the lack of a collateral and difficulty of bankers to deal with illiterate women.

That led to the setting up of the Shri Mahila Sewa Sahakari Bank Ltd or SEWA Bank. In 1974, 4000 women contributed a share capital of Rs ten each to set up the co-operative bank. In May 1974, SEWA bank was registered as a co-operative bank. The deposits today stand at around Rs 62 crore.

Deviating from the general pattern of co-operative banks, SEWA Bank has become a multi service organisation providing facilities for savings and fixed deposits accounts, providing credit for furthering economic and income generating activities of poor and self employed, extending technical and management assistance in production, storage, procuring and sale of goods and services and providing facilities to women to rescue their jewellery from pawn brokers and private money lenders and giving loans against jewellery.

Bank managing director Jayshree Vyas could not be reached for comment.