In Bihar,banks go up to villagers’ doorstep

Mistri and thousands like him who had previously no access to banks will now benefit from the smart cards being distributed in 9,230 Bihar villages under the Reserve Bank of India’s (RBI) Financial Inclusion Plan.

The smart cards,that comes with a zero balance savings bank account,will be linked to the UID. All government benefits such as MNREGA wages,Indira Awas fund and the proposed the PDS subsidy will also be eventually routed through it.

Over 1,000 Bihar villages having more than 2,000 people with no banking services have started getting “banking at doorstep” under the RBI plan,started a year ago.

Naxal-hit districts such as Gaya,Jehanabad,Aurangabad and Nawada were the first to benefit. All of 9,230 Bihar villages will get these smart cards by March 2013.

The apex bank,that intends to providing banking services to all villages,has assigned 20 banks to complete the task in Bihar under which a business correspondent,an agency chosen by a bank,takes a hand-held swipe machine to villages to enable them to deposit or withdraw money.

Some banks such as State Bank of India (SBI) has preferred to put kiosks with the machines at each village. The kiosk works between 10 a.m. and 5 p.m. The SBI has so far covered about 400 villages in Jehanabad,Gaya,Aurangabad,Buxar and Bhojpur districts.

“I am a proud smart card holder now. I only used to wonder looking at such cards. Now swiping it gives a great feeling,” Ramswaroop Mistri said.

Village women wanted to know if they could get loans and government benefits with the card. They listen to the bank agents with rapt attention as they explain the benefits that they will get in course of time.

Sitiya from Yashpur village of Jehanabad said: “It is a new experience. Such things were unthinkable in a Naxal-hit area a few years ago”.

Those who have not got it so far want to complain. But bank authorities told them that family heads would get the cards first and subsequently everybody.

At Mansurpur village under Sakra block of Muzaffarpur where Bank of India recently distributed 262 smart cards called ‘Star Abhilasha’,people are waiting for the machines to land at their doorsteps.

State Level Bankers Committee (SLBC) convenor Salil Choudhary said: “Of the leading banks that have been chosen for the financial inclusion plan,the Uttar Bihar Gramin Bank has got 2,543 villages,SBI 1,557,PMB 953,Madhya Bihar Gramin Bank 932 and Bank of India 364 villages”.

SBI chief manager at the local head office,SS Pathak said: “We have so far covered only 400 villages and intend to cover another 228 more by this month-end”.

Bihar Deputy Chief Minister Sushil Kumar Modi said: “Smart cards in all remote Bihar villages will be a reality soon and will make transfer of government benefits easier and smoother”.