Govt to open 50 mn bank accounts in villages

The United Progressive Alliance (UPA) government will unveil an ambitious financial inclusion programme on Wednesday that aims at opening 50000,000 crore no-frill accounts by March 2012, spanning 73,000 villages. Called ‘Swabhiman’, the programme, to be launched by UPA chairperson Sonia Gandhi, was to be introduced earlier, but put off twice.

‘Swabhiman’, to be launched in the presence of finance minister Pranab Mukherjee, bankers and ministry officials, is one of two ambitious programmes of the UPA regime to spread financial inclusion. The other programme — ‘Swavalamban’ — launched in September last year. The Centre provides Rs 1,000 as pension for the poor in a year, if they come forward for ‘Swavalamban’.

‘Swabhiman’ will not end with just opening accounts, officials said adding the purpose is to keep the accounts alive. They said hand-held computers and banking correspondent model will be used to spread the scheme. Banks are expected to popularise the electronics benefit transfer scheme for efficiency of the programme, officials said.