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SBBJ to launch 'Bank on Bike' for financial inclusion
8 Mar, 2011, 02.54PM IST, Rituraj Tiwari,ET Bureau
JAIPUR: State Bank of Bikaner and Jaipur , a subsidiary of State Bank of India (SBI), is planning to launch Bank on Bike initiative to bring unbanked rural population of Rajasthan under the banking net. This initiative is a part of the financial inclusion plan of the central government to cover all villages with 2,000 and above population. SBBJ newly appointed managing director Shiva Kumar told ET that the bank will cover 838 villages in the state by March 2012.
Kumar in his previous appointment as deputy managing director of SBI has recently piloted this scheme in districts of Andhra Pradesh. We will employ progressive farmers, retired teachers, kirana shop owners and self employed people as business correspondents (BC) for this job. We will then open outlets in every village with a two-hour fixed transaction time on 6 days a week. One BC would ideally cover three villages on his bike in the stipulated time for delivering banking services through the outlets. This operation would be governed by financial inclusion centres to be set up one each in all the 33 districts of the state, he said.
The bank believes it to be a much cheaper and effective option compared to a bank on mobile van. The designated business correspondent, on the bike, will carry a laptop and data card to access specially designed SBBJ Internet site for the purpose. It is accessed through a biometric interface and thereby facilitates transactions for illiterate people too. We will hire them on a guaranteed an income of Rs 2000 per month. On opening every no frill account and identity card, the BC will get Rs 20 and Rs 10 respectively. They will also get 0.5% on every withdrawal and 50 paise per account per month as account maintenance charges. Apart from that, they will be entitled for a commission of 0.5% on annual balance per account. Even then their earning is less that Rs 2000, then bank will fill the gap, he said.
Source: SBBJ to launch 'Bank on Bike' for financial inclusion - The Economic Times
JAIPUR: State Bank of Bikaner and Jaipur , a subsidiary of State Bank of India (SBI), is planning to launch Bank on Bike initiative to bring unbanked rural population of Rajasthan under the banking net. This initiative is a part of the financial inclusion plan of the central government to cover all villages with 2,000 and above population. SBBJ newly appointed managing director Shiva Kumar told ET that the bank will cover 838 villages in the state by March 2012.
Kumar in his previous appointment as deputy managing director of SBI has recently piloted this scheme in districts of Andhra Pradesh. We will employ progressive farmers, retired teachers, kirana shop owners and self employed people as business correspondents (BC) for this job. We will then open outlets in every village with a two-hour fixed transaction time on 6 days a week. One BC would ideally cover three villages on his bike in the stipulated time for delivering banking services through the outlets. This operation would be governed by financial inclusion centres to be set up one each in all the 33 districts of the state, he said.
The bank believes it to be a much cheaper and effective option compared to a bank on mobile van. The designated business correspondent, on the bike, will carry a laptop and data card to access specially designed SBBJ Internet site for the purpose. It is accessed through a biometric interface and thereby facilitates transactions for illiterate people too. We will hire them on a guaranteed an income of Rs 2000 per month. On opening every no frill account and identity card, the BC will get Rs 20 and Rs 10 respectively. They will also get 0.5% on every withdrawal and 50 paise per account per month as account maintenance charges. Apart from that, they will be entitled for a commission of 0.5% on annual balance per account. Even then their earning is less that Rs 2000, then bank will fill the gap, he said.
Source: SBBJ to launch 'Bank on Bike' for financial inclusion - The Economic Times
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