Sonia pushes financial inclusion

NEW DELHI: In its attempt to further push the cause of financial inclusion, UPA Chairperson Sonia Gandhi launched a campaign on Thursday that aims to bring banking services to vast unbanked rural areas.

The 'Swabhimaan' campaign seeks to enable small and marginal farmers obtain credit at lower rates from banks and other financial institutions, insulating them from exploitation of the moneylenders.

At present out of the 600,000 habitations in the country, only about 30,000 have a commercial bank branch.

" The policies of the government are specifically designed to ensure inclusive growth, particularly of the marginalised and weakest sections without whose empowerment the country's progress will always be impaired," Gandhi said.

Under the financial inclusion drive announced by Finance Minister Pranab Mukherjee in the last budget, the government has set a target of covering 73,000 new habitations, with population of 2,000 and above under the banking services by March 2012.

Gandhi urged bankers to take a proactive step in helping the marginalised segments. "I would like to urge our bankers to take up this task with a sense of responsibility and understanding and exercise courtesy and respect, specially to small borrowers," she said.

The government is also looking to set up a 800-crore fund to encourage banks to reach out to the financially excluded population. The fund will compensate banks for costs incurred on providing no frills accounts in rural areas and other expenses incurred.