A one-day round-table conference on 'Prosperity through financial inclusion and direct benefit transfer' will be held here tomorrow. This important national-level conference will be participated by representatives of Union and State Governments and banks including senior officers of Union Panchayats and Rural Development Department, States’ Panchayats and Rural Development Departments and Chairmen-cum-Managing Directors of lead banks and regional managers of Reserve Bank of India and NABARD and senior officers of rural development banks of various States.
The main topics to be discussed at the conference include successful implementation of direct benefit transfer system in 15 districts of Madhya Pradesh under integrated social security scheme, ultra small banks opened under financial inclusion, transaction of Rs 600 crore by these banks etc.
The conference will also analyse all aspects of ultra small banks’ success. Discussions will also be held on e-FMS (electronic fund management system) implemented in Madhya Pradesh for ensuring transparent implementation of MNREGA.
Inclusive development is possible only when poor, marginal and deprived sections of society are brought under the purview of financial inclusion and given benefits of various social sector schemes in time. For this, new type of banking system will be useful for economic development of remote areas.
Madhya Pradesh government has evolved this novel system on financial inclusion keeping this in view. Areas where banks do not exist in 5 km radius were identified after contacting lead bank managers, fiscal institutions and post offices. People living in such remote village have to travel 20 to 90 kms to get their payments.
Through financial inclusion of Madhya Pradesh, various banks are setting up ultra small bank branches/customer service centres in rural areas so that people living in remote villages can get banking facility within a radius of 5 kilometers. For this, the State Government has arranged for free space and broadband connectivity in Gram Panchayat buildings. Provision has been made to construct separate room for bank/post office in new buildings of panchayats. Work is under progress to open 3000 ultra small banks in Madhya Pradesh. Of these, many have started functioning and transacting good business. Bankers have also started seeing good prospects in intra-village business. State Government is providing various facilities for opening ultra small banks in selected areas of various districts.