What are the advantages of having bank account?
One can open saving, recurring/ fixed deposit accounts. Banks offer loans and many
other useful services. The wages/salary drawn can be directly credited to the
account. All social benefit like MGNREGA Wages, pensions etc. can be directly
credited to bank account through EBT. The money kept with the bank can be deposited
or withdrawn at convenience. Banks do not charge any fee for depositing money but
pays interest on the money deposited. Beside a bank account gives us an identity
which is recognized by other government agencies.
What is Financial Planning?
Financial planning is to help individuals to use their resources against the needs
efficiently in short term and achieve their longterm financial goals through
investments, asset aloocation, risk management, retirement planning etc.
What is Financial Exclusion?
Financial Inclusion is the process of ensuring access to mainstream financial
services and timely and adequate credit to all excluded people vulnerable groups
such as weaker sections and low income groups at an affordable cost.
Why should we have Financial Exclusion?
Major section of the Indian Economy do not access to formal banking services. To
bring them under the banking purview and provide them banking facilities, financial
inclusion initiatives were taken since 2005-06. Bring the excluded section of the
society within the bank purview would enable banks as financial intermediaries to
contribute to economic growth through mobilization and allocation of credits towards
various project financing, thereby providing households, businesses to attain their
economic goal.
What is SLBC?
SLBC means State Level Bankers Committee which is an inter-institutional forum at
State level ensuring coordinating between governments and banks on the matters
pertaining to banking development. A designated bank becomes the Convener Bank of
Particular State Union Territory.
What is SSA?
SSA is a Sub Service Area under lead bank scheme Service Area Approach under which
villages are identified and assigned to bank branches based on their proximity and
contiguity. Sub Service Area of cluster of more than wherein up to 1000 to 1500
households are brought under such cluster for providing banking services.
What would be the features of accounts opened?
Saving bank accounts with zero balance would be opened and AMT/Debit (RuPay) card
would be issued to the account holder.
What are the requirements for providing basic banking accounts at household level?
For every uncovered household, it is required to open one account in every household
fulfilling the basic KYC requirements.
What is Business Correspondents (BC)?
Business Correspondents are retail agents engaged by banks for providing banking
services at locations other than a bank branch/ATM. Basically, BCs enables a bank to
expand outreach and offer limited range of banking services at low cost. BCs, are an
integral part of a business strategy for achieving greater financial inclusion.
What are the functions of BC?
BCs are permitted to perform a variety of activities which include:
- • Identification of borrowers • Attend to collection of small value deposit • Disbursal of small value credit • Recovery of principal/collection of interest • Sale of micro insurance/mutual fund products/pension products/other third party products • Delivery of small value remittances/other payment instruments • Creating awareness about savings and other products • Education and advise on managing money and debt counseling.