Federal Bank's financial inclusion initiatives achieves another milestone

The financial inclusion initiatives of Federal Bank have achieved positive results in the State, with the implementation of the Information Communication Technology/Business Correspondent model in 12 villages allotted to the bank one year before the schedule. The bank was allotted 12 villages with a population over 2,000 in Kerala to provide banking channel by March, 2012, and the bank achieved this fete by March 17, 2011, itself. The bank has implemented ICT model in Puthuppally village in Alappuzha in a record time of 14 days which was allotted in August 2011.

Micro ATMs

The bank has christened its ICT model Financial Inclusion product as FedJyothi, a smart-card based solution, in which customer transactions are facilitated using Hand Held Terminals or Micro ATMs by business correspondent agents. FedJyothi cards issued to each customer stores information on the latest balance, last few transactions and customer biometric and demographic information. Apart from the allotted villages, FedJyothi implementation is in full swing in other 48 underbanked villages self allotted by the bank in the State. As on date, the bank has engaged 120 business correspondents/facilitators and issued more than 5,000 FedJyothi Smart Cards and it is targeting 50,000 smart card customers by March 2012, senior officials of the bank, said. Federal Bank became the first private sector bank in the State to open a financial Inclusion ‘Grama Jeevan' branch with ATM facility in the unbanked villages for achieving financial inclusion. The bank's ‘Grama Jeevan' branch at Thuruthy Vengoor West in Ernakulam district is the first of this kind which was appreciated by the RBI Governor, Dr D. Subbarao, during his visit to Vengoor West village. Grama Jeevan branches are full fledged bank branches that offer all kinds of banking facilities to the marginalised customers. Federal Bank reaches out to weaker sections of the society by providing various products like no-frill accounts, educational loans, DRI loans, agricultural loans and loans to Self-Help Groups/Kudumbasree, through its brick and mortar branches.

FLCC centres

Federal Bank is the first bank in the State to set up Financial Literacy and Credit Counselling (FLCC) centres and only bank having four FLCCs in the State. Through these Federal Ashwas FLCC centres across the State, customers are educated on responsible borrowing, proactive and early savings, and alsdo offers debt counselling to individuals . The bank has been conducting various financial literacy classes for higher secondary students to educate them on banking and various financial services; so far 15,000 students have benefitted from this programme, the officials said.

HBL