Banks to launch first phase of customer outreach loan initiative on Oct 3

The state-owned banks and several private sector financial entities are gearing up to launch first phase of 'customer outreach initiative' covering 250 districts on October 3, for providing loans to retail customers and MSMEs to meet festival time needs.

During four-day period beginning October 3, loans will be provided for retail, agriculture, vehicle, home, MSME, education and personal needs of consumers.

The second phase will be in 150 districts and will be held between October 21 and October 25, just before Diwali, sources said.

This is part of the systematic bank reform process which envisioned taking banks to doorsteps and increasing ease of customer access and delivery of services, sources added.

During the annual performance review earlier this month, public sector banks decided to undertake outreach exercise in identified 400 districts. Later, private sector too expressed their willingness to join the initiative.

These camps will provide a one stop destination for MSMEs, small retail businesses and end customers to access all bank services, especially loans in auto, home, personal and business section.

While at one level it will help businesses to gear up for the festive season, it will also provide ready cash in the hands of the consumers.

Needless to say, all prudent financial norms and due diligence will be followed by PSBs while disbursing loans, the sources said.

Awareness camps will be held in these districts to let people know about the event.

For spreading information, the sources said, local vendor associations, commercial organizations and chambers of commerce may also be engaged to spread the message among merchants and customers.

In line with the government's thrust on Digital India, the initiative will focus on financial inclusion schemes and digital payment methods so as to encourage consumers and merchants to increasingly shift to these payment modes, the sources noted.

Apart from PSBs, NBFCs/HFCs/MFIs/SIDBI and private sector banks can also participate in the scheme.