Union Bank offers OD facility to its non-frill account holders

As a part of its financial inclusion program Union Bank of India will be providing overdraft facility (OD) to all its non-frills account holders.

MV Nair, chairman and managing director, Union Bank of India (UBI), in his presidential address at a financial inclusion conference, in Chennai said this move will help in bringing customers to the bank for transaction also bank will be able to sell other products.

He said, “The needs of the poor for lifecycle events such as medical emergency, wedding among others are pressing and require immediate fulfillment. The bank will use its village knowledge centers, financial literacy and credit counseling centers, rural self employment training institutes (R-SETIs) and other mediums to spread awareness that to meet their emergency needs, an overdraft facility exits should they require.”

To strengthen the financial inclusion plan bank has drawn a medium term financial inclusion plan 2010-2013 for systematic coverage of the unreached and it aims to cover 32,000 villages in the next years that constitute approximately 5% of the projected number of villages in the country.