State Bank of India has declared 100 per cent financial inclusion in Gulbarga district with the cooperation of banks in the district. Financial inclusion means delivery of banking services at an affordable cost "" no frills accounts "" to vast sections of low-income groups. | |
| According to a statement from the SBI, Gulbarga district, which has a literacy rate of 35-36 per cent, is one of the most backward districts. Of the 10 talukas in the district, nine are classified as the most backward. The district has also been selected for implementation of the National Rural Employment Guarantee Programme (NREGP). |
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| In the 18th empowered committee meeting held at the Reserve Bank of India in April last year, the district was selected for implementing 100 per cent financial inclusion on a pilot basis. According to the provisions of the NREG Act, every rural household is guaranteed a minimum of 100 days of wage employment every year and wages are credited through a bank account. |
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| In all, 26 banks and 56 NGOs were involved in completion of the task. |
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| Mahpara Ali, chief general manager, SBI Bangalore circle, said, "Since Gulbarga district is one of the most backward districts, opening of so many accounts in a short span of six months makes it a creditable achievement." |
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| The RBI had, in its Annual Policy Statement for the year 2005-06, urged banks to review their practices to align them with the objective of financial inclusion. |
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| As a sequel and with a view to achieving greater financial inclusion, the RBI in its mid-term review of policy 2005-06 exhorted banks to make available a basic 'no frills' account either with nil or minimal balances as well as charges that would make such accounts accessible to vast sections of the populace. |
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