Orissa signs MoU with SBI to bring financial inclusion in all GPs

BHUBANESWAR: Orissa on Tuesday became the first state in the country in providing banking outposts in all 6234 gram panchayats by entering into an historic ���Memorandum of Understanding��� (MoU) with the country���s largest bank State Bank of India.

This will facilitate Electronic Benefit Transfer (EBT) of National Rural Employment Guarantee [NREGA] payments and other social security benefits throughout the state paving the way for financial inclusion of disadvantaged and low income groups.

As per the MoU, the Bank through its Banking Correspondent (BC) will put in place Banking Outposts in all the 6,234 GPs of the State. The BC will establish Customer Service Points [CSPs] in all the GPs who will act as ���Business Correspondent��� of the Bank in the area. This will make ���Door Step Banking��� a reality.

���Initially, the project targets to cover payments to NREGA beneficiaries throughout the State and will be launched in 1,000 GPs in 10 districts, in the first phase, where NREGA beneficiaries and payments are more in number. The Panchyati Raj Department and Bank will select the GPs on the above criteria taking into consideration the contiguity of the GPs in the District. Based on the experience in the first phase, the Project will be extended to the remaining GPs over a period of next 10 to 15 month period���, SBI CGM, Shiv Kumar said.

The other social security benefits like old age pensions etc, distributed by the state government will also be gradually brought under the EBT Project. SBI also proposes to use this platform for non-government banking business. The masses in rural areas across the state will be able to avail of the banking facilities even if they are not beneficiaries of government schemes.

The Bank will leverage the BC model for achieving the goals of financial inclusion. SBI has selected ���A Little World��� (ALW) as one of its technology partner for this project in the state. The technology platform of the ALW is fully integrated with the Bank���s Technology platform and data transfer is seamless. This model will provide a workable option of banking services in inaccessible areas of the State in a cost effective manner.

Speaking on the occasion, Mr Samal exuded confidence that the historic MoU would bring a sea change in the rural economy by rooting out corruption and go a long way to put a stop to migration of the rural poor.

SBI chief general manager Shiva Kumar and Panchayat Raj commissioner and director, J P Agarwal singed the MoU on behalf of the Bank and the state government respectively in the presence of minister for Panchayat Raj, Prafulla Samal.