Gram Sabhas evoke good response

Karnataka Vikas Grameena Bank (KVGB), the lead regional rural bank covering nine districts of North and Coastal Karnataka has found that Grama Sabhas are helpful in deepening the Financial Inclusion process.

The process also promotes the habit of thrift, the culture of savings and improvement in access to credit and also enables efficient re-payment mechanism, thus strengthening the resource base of the Bank. It in turn benefits the economy as well. On Tuesday the bank conducted 1,000 Grama Sabhas in 1,000 villages under its jurisdiction.

“The success of rural development depends to a large extent on the active participation and willing co-operation of rural people. Hence KVGB has decided to conduct Grama Sabhas on a large scale. The main idea behind the Grama Sabha is to promote inclusive development and ensure access for the poor, weak and the downtrodden and has easy access to reasonable and cost-effective banking facilities in the shortest possible time,” said KVGB chairman C Sambasiva Reddy. KVGB has a target of reaching Rs 13,000 crore business by the end of this fiscal and has planned to disburse Rs 3,600 crore. In addressing the crisis of electrical power supply, KVGB plans to popularise the initiative ‘Namma Manege Nammade Belaku.’ Through this concept the bank has already converted 127 villages as solar villages and this year the bank plans to convert additional 50 villages as solar villages. Reddy told Business Standard that as per the directions of the Centre/RBI/Nabard and Syndicate Bank, the bank plans to provide banking facilities to habitations having a population of less than 2,000 using appropriate technologies under Ultra Small Branch concept along with 50 additional regular branches in different areas.

 

The bank received an overwhelming response for its plans from the rural population at a Gram Sabha organised at Badal Ankali village in Belgaum district. The ‘Sabha’ proved to be an occasion for the officials and elected representatives to know the needs of the rural people while the villagers had an opportunity to learn about various schemes offered to them by the Bank. MP Suresh Angadi who was present at the Gram Sabha was impressed at the response and said over 20 per cent of India’s population is still deprived of the benefits of financial inclusion and this social inequality should not continue for long in the growing economy.

Banking is predominantly a customer-oriented business and good customer service is the key to the banks’ growth and stability. Thus, financial inclusion is no longer a policy choice but a policy compulsion. Rural areas are still backward due to lack of awareness on many issues. District-level officials and bankers should make sincere efforts to create awareness about government schemes and banking facilities among people in rural areas. said MP of Belgaum Suresh Angadi.