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Thread: opening account in bank
27-09-07, 05:55 PM #9
Re: opening account in bank
There is a organisation called FINO (Financial Information Network Organisation, FINO)
They have been working on this problem and a small start was made on 15th August 2007:
Mumbai hawkers to get ‘smart’ with Union Bank
Mumbai, Aug 17 Vegetable vendors in Mumbai will soon be able to carry out banking transactions at their doorsteps, thanks to Union Bank of India.
The bank has introduced biometric cards for vendors, which will help them deposit money and take loans.
This initiative, under the bank’s financial inclusion programme, was launched on August 15.
Mr M.V. Nair, Chairman and Managing Director, said: “Hawkers find it daunting to enter a bank and they also lose a day’s business when they go to a branch. But they have the intention to save. So, we are giving them the facility to save.”
To begin with, Union Bank has given 60 smart cards to hawkers who are part of the Hawkers’ Association of Mumbai and opened ‘no-frills’ accounts for them.
The bank has tied up with FINO for issuing the smart cards.
These cards store data about the customer and the account.
Banking correspondents appointed by FINO Fintech Foundation would go to these hawkers with ‘point of transaction’ terminals.
By swiping the card on these handheld devices, hawkers can deposit their savings or borrow money.
The data from the cards, stored on the terminals, is later transferred to the bank’s servers.
Mr Nair said: “We want to place 200-250 terminals to cover one lakh hawkers this year.”
As a first step, the bank will encourage the hawkers to save. The second step would be to provide them finance, through a general credit card, said Mr Nair.
As a third step, the bank is considering providing insurance for the hawkers through a tie-up with LIC, but is yet to finalise it, he added.
The bank has launched similar schemes in Andhra Pradesh, where it has opened about 3,500 ‘no-frills’ accounts and in Uttar Pradesh, where it has opened 5,000 accounts.
For this fiscal, the bank has set a target of 30 per cent growth and Rs 32,000 crore as outstanding advances for the priority sector this fiscal, Mr Nair said.
The Hindu Business Line : Mumbai hawkers to get ‘smart’ with Union Bank
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