Presentation by
Dr. K C Chakrabarty
Chairman and Managing Director
Indian Bank,Chennai
At
Financial
Exclusion
Financial Financial
Discrimination Illiteracy
Financial
Exploitation
Gradations of Financial
Exclusion
2. Geographical coverage
• 5% villages are having a bank branch
3. SHG coverage
• Out of around 400 million poor, 125 million poor are
covered of which 113 million are women
4. Farmers coverage-
• Tenant farmers/share croppers/oral lessees
• Small and marginal farmers
• Out of 89.35 mill. SF/MF, 34.70 mill. (46.30%) are
covered.(House holds)
Most needed Services
for Financially Excluded
1. Access to Small loans or overdrafts
2. Check in Accounts
3. Small Savings Products
4. Health Insurance
5. Life Insurance
6. Insurance against the failure of activity
7. Financial Asset
8. Credit Card
9. Entrepreneurship credit
Model for Financial Exclusion
Do without
High Cost alternatives Social/wider exclusion
Poor education
Good education
I. Coverage
II. Access to Diversified Financial
Products and Services
III. Delivery Model- Day to day
transactions
Financial Inclusion- Indian
Experiment
Initiative by Indian Bank
I. Indian Bank was the first Bank to implement the
Financial Inclusion Project on a pilot basis in UT of
Pondicherry where the Bank has lead responsibility
II. IB implemented the concept first in Mangalam
Village of Pondicherry on 30.12.05 which became
the first village in India, where all the households in
the village were provided Banking facilities.
III. Indian Bank spearheaded the project and involved
all the 144 bank branches of 37 Banks operating in
UT of Pondicherry.
IV. Participants of the project are: All Banks,
Govt.Depts, Insurance Cos,NGOs,Facilitators etc.,
The Objective
80000
70000
60000
50000
40000
30000
20000
10000
0
OTHER CO OP PRIVATE
INDIAN BANK SBI GROUP
NAT.BANKS BANKS BANKS
HOUSEHOLD TAR 41963 74605 31906 30603 36461
HOUSEHOLD ACH 40557 26537 8511 9531 9381
SB A/Cs OPENED 67822 23351 3064 12088 3926
Replication of the
success
1. RBI in the 2006-07 Annual Policy Statement highlighted
about Financial inclusion project implemented by the
bank in UT of Pondicherry, and advised SLBC convenors
in all State / UTs to identify at least one district in their
area for achieving 100 percent financial inclusion on the
lines of the initiative taken in Pondicherry.
2. As a follow up, the project was launched in TN in
Cuddalore Dist, where again IB is the Lead Bank involving
all the banks covering 877 villages.
• Launched on 11.07.06 and expected to be completed by
July 2007.