SWABHIMAAN

In a big nation like India providing banking facilities across length and breadth of the country, especially in rural areas, has always been a great challenge for the successive governments since Independence. Though Nationalisation gave a big boost to expansion of banks in rural areas with Public Sector Banks becoming important instruments for advancement of rural banking and changing lives of rural populace. However, financial inclusion remains one of the biggest challenges before our nation even today as only about 38% of bank branches are in rural areas and only 40% (approx.) of the country’s population have bank accounts.

To address this problem, a nationwide programme on financial inclusion, “Swabhimaan” was launched in February, 2011 by the Government, with its focus on bringing the deprived sections of the society in banking network to ensure that the benefits of economic growth reach everyone at all levels.

“Swabhimaan” is a path-breaking initiative by the Government and the Indian Banks’ Association to cover economic distance between rural and urban India. This campaign is a big step towards socio-economic equality by bringing the underprivileged segments of Indian population into the formal banking fold for the first time. The vision for this programme is social application of modern technology. 

This campaign ensures to provide the following services to the Rural India:

• 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. 
• The programme will increase the demand for credit among the millions of small and marginal farmers and rural artisans who will benefit by having access to banking facilities.
• This financial inclusion campaign aims at providing branchless banking services through the use of technology.
• Banks will provide basic services like deposits, withdrawals and remittances using the services of Business Correspondents (BCs) also known as Bank Saathi.
• The 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 (BCs) in their village itself.
• The Government hopes to reach the benefits of micro insurance and micro pension products to the masses through this banking linkage.
• This programme now makes it possible for the large number of migrant workers in urban areas to remit money to their relatives in distant villages quickly and safely.
• The facilities provided through banking outlets will enhance social security by facilitating the availability of allied services in course of time like micro insurance, access to mutual funds, pensions, etc.
• 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 payments.

Bank Saathis / Business Correspondents:

The success of this programme will depend on the proper utilization of the Business Correspondents (BCs) or Bank Saathis, who are persons engaged by Banks to create a closer relationship between the formal financial system and the people living in the rural hinterland, far away from brick and mortar bank branches. The BCs will help in making available banking facilities to the interior areas through various handheld mobile devices and other technologies that reduce cost and have the ability to record banking transactions and to communicate the record of such transactions to the Bank using the internet facilities / GPRS.

Monitoring of the program:

“Swabhimaan” campaign is expected to benefit millions of small and marginal farmers and rural artisans by providing them easy access to credit at lower rates and save them from clutches and exploitation by moneylenders. The progress of this programe will be monitored through the State Level Bankers Committee mechanism. District Magistrates/Collectors are being sensitized in this regard to ensure proper monitoring of the programme through coordinated efforts of all stake-holders. The State Governments have been advised to route all Government benefits and social security payments through the banking system so that the benefits reach the beneficiaries timely and efficiently and leakages are reduced substantially.