Federal Bank ATM users to enjoy absolute freedom

Federal Bank has come up with a very exciting scheme , that will bring a lot of relief to the ATM users of the bank. The bank will allow ATM users to withdraw money from ATM of any bank across the country any number of times without any deductions.

Presently the ATM users are allowed to make only 5 transactions in month from any bank ATM and if they make a sixth transaction from non parent bank ATM a sum of Rs 20 is deducted from their account.

For the time being, the new facility from the bank will allow its customers to enjoy more freedom than any other bank ATM user.

3,300 villages of K'taka to be covered under Fin. Inclusion.

To evaluate the progress of the Financial Inclusion Plan, the Finance Ministry has identified 16 broad measures for the purpose. Mr Basant Seth, Chairman and Managing Director of Syndicate Bank, and Chairman of the State-Level Bankers' Committee (SLBC) – Karnataka asked banks to follow the guidelines in order to implement the Financial Inclusion Plan.

There are 3,395 villages in Karnataka with population above 2,000 that do not enjoy basic banking facilities but will be brought under the banking system under the Financial Inclusion Plan before March 2012. The villages will be brought under the banking system either by simply opening a branch or through the Business Correspondents.

Mr Seth also asked the banks to use the UIDAI( Unique Identification Authority of India) details for opening the no frill accounts.

Business correspondents may enjoy higher salary

There is a good news for the business correspondents . RBI has decided to raise the income of these business correspondents . These correspondents works mainly in the rural and remote areas of the country on behalf of nationalized and commercial banks but considering the amount of work they do, they were not paid well.

These correspondents are a very important link between the banks and the rural population. These correspondents visits the villages and makes them aware of the benefits of the bank accounts . Each correspondent have a machine through which people can make transactions. Apart from this he answers all the queries of the people.

It has been found that business correspondents are even more effective then the actual bank employees. Since these correspondents belongs to the same village or locality the people trusts them and they can even convince the villagers more effectively to open a frill account.

Currently the correspondents are paid between 1,000 to 1,500 but according to the RBI circular now their salary can go p to 5,000.

RBI has set the target to provide basic banking facilities to the unbanked villages with population above 2,000 before march 2012 and the Business Correspondents are a very important link between the banks and the villagers. The correspondents are doing very well presently and working hard to cnvert the dream in to reality.

NABARD to utilize JLG to reach rural masses

The National Bank for Agriculture and Rural Development (NABARD) has found an altogether new and effective way of financing the rural residents through Joint Liability Groups ( JLG). The new plan was a success in Kerala.

Through JLG a group of people ranging 4-10 could avail loan from the bank against mutual guarantee .last year 21,000 people were benefitted through this scheme in Kerala alone . Executive Director of the bank Mr Prakash Bakshi said that Through JLGs, the bank could "reach the rural masses including the tribal, fisher folk and farmers in a better way".

NABARD has outlaid a credit plan of Rs 58,159 crore in State Credit Plan for the year 2011-12 of the bank for 14 districts in Kerala. Bank will ensure to provide 100 percent coverage of Kissan Credit Cards ( KCC) to meet their expenses.