Manipur Rural Bank left no stone unturned for delivering financial services up to all the corners of Manipur with an objective of Total Financial Inclusion. Recognising our full efforts Department of Financial Services, Ministry of Finance, Government of India have issued a certificate for the contribution made by Wangjing branch of the bank for securing 3rd rank in numbers of PMJDY accounts opened under Pradhan Mantri Jan Dhan Yojana for 16th August to 31st Oct. 2014.
Financial inclusion is the delivery of financial services at affordable costs to vast sections of disadvantaged and low income groups.
Why Manipur Rural Bank focus on Financial Inclusion.
Estabalishing habit to save money: It aims to provide a critical tool to inculcate the habit to save and will move away from traditional modes of parking of their savings in unproductive and insecure way.
Giving formal credit avenues: It provides a chance to get credit from formal banking channels shall allow the entrepreneurial spirit of the masses to increase outputs and prosperity in the countryside.
Avoid leakages in public subsidies and welfare programmes –Government is looking for direct cash transfers to beneficiaries through their bank accounts rather than subsidizing products and making cash payments. This will reduce government’s subsidy bill and provide relief only to the real beneficiaries. All these efforts require an efficient and affordable banking system that can reach out to all.
Steps taken for financial inclusion
Introduce no-frills account – These accounts provide basic facilities of deposit and withdrawal to account holders makes banking affordable by cutting down on extra frills that are no use for the lower section of the society. These accounts are expected to provide a low-cost mode to access bank accounts.
Provide banking services through business correspondents – The banking systems have started to adopt the business correspondent mechanism to facilitate banking services in those areas where banks are unable to reach. Business Correspondents provide affordability and easy accessibility to this unbanked population.
EBT – Electronic Benefits Transfer – To mitigate the leakages that are present in transfer of payments through the various levels of bureaucracy, government has begun the procedure of transferring payment directly to accounts of the beneficiaries. This will help the beneficiaries while reducing government’s cost of transfer and monitoring. Once the benefits starts to accrue to the masses, those who remain unbanked shall start looking to enter the formal financial sector.