(IGP) Special Current Affairs Material for IAS (Pre) 2013 – PIB “Topic : Swabhimaan – A Unique Financial Inclusion Initiative”

(IGP) Special Current Affairs Material for IAS (Pre) 2013

Chapter: Gist of Press Information
Bureau Articles

Topic: Swabhimaan – A Unique Financial
Inclusion Initiative

Q. What is the picture of financial inclusion?

Only about 38% of bank branches are in rural areas and only
40% (approx.) of the country’s population have bank accounts. Though strides
have been made in expansion of bank branches from around 8700 at the time of
bank nationalization in 1969 to around 87,000 presently, only 32,000 (approx.)
are in rural areas. The average population per bank branch is around 13,900.

Q. Swabhimaan?

  • A nationwide programme on financial inclusion,
    “Swabhimaan” was launched in February, 2011 by the Government, which is
    focused on bringing the deprived sections of the society in banking network
    to ensure that the benefits of economic growth reach everyone at all levels.

  • This campaign promises to bring basic banking services to
    73,000 unbanked villages with a population of 2,000 and above by March, 2012
    and at least 5 crore new accounts will be opened.

  • The movement will facilitate opening of banks accounts,
    provide need-based credit, remittance facilities and help to promote
    financial literacy in rural India.

Q. What is the vision of Swabhimaan?

  • The vision for this programme is social application of
    modern technology. Banks will provide basic services like deposits,
    withdrawals and remittances using the services of Business Correspondents
    also known as Bank Saathi.

  • This initiative also enables Government subsidies and
    social security benefits to now be directly credited to the accounts of the
    beneficiaries so that they could draw the money from the Business
    Correspondents in their village itself.

  • Banking facilities like Savings Bank, recurring Deposits,
    Fixed deposits, Remittances, Overdraft facility, Kisan Credit Card (KCCs),
    General Credit Cards (GCC) and collection of cheques will be provided.

  • The Banks are also working together with the Unique
    Identification Authority of India (UIDAI) for enrolment, opening bank
    accounts and also to facilitate transfer of government subsidies and other

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