Central Bank of india to support rickshaw pullers

Public sector bank, Central Bank of India signed recently an MoU with American India Foundation (AIF) to provide livelihood support to 100,000 rickshaw pullers and bring them into formal banking fold.

Under the MoU, the Bank would provide credit to AIR and its partner micro finance institutions (MFI) in the country for enabling rickshaw pullers to own their rickshaw on easy installments in several states, including Uttar Pradesh, Bihar, Delhi and Assam.

The beneficiaries are provided with brand new rickshaws along with accidental insurance policy, uniform, rickshaw license, municipal permits, bank account and other social benefits.

Speaking on the occasion, Central Bank Chairman and Managing Director S Sridhar said the MoU, valid through 2013, was another step towards financial inclusion. He exhorted the low income groups to avail of banking facilities, including taking of loans.

In this phase 1,500 rickshaws and handcarts were distributed to the beneficiaries, who have to repay the loan in weekly installments of Rs200-250 for 52 weeks.

The scheme is being run under the aegis of Rickshaw Federation Programme, which also has a Lucknow-based partner MFI Bhartiya Micro Credit (BMC).

BMC Managing Director Vijay Pandey told Business Standard, in UP, the scheme had been launched in Sitapur, Kanpur, Mirzapur and Lucknow districts.

So far, Punjab National Bank, Central Bank of India and Small Industries Development Bank of India (Sidbi) have provided financial support to the Programme, while MoUs with two more public sector banks are likely to be signed soon.

In the last three years, 12,000 rickshaw pullers had been benefited pan India under the Programme.