Banks To Launch First Phase Of Customer Outreach Loan Initiative On Oct. 3
Customers wait in line to withdraw money from a Central Bank of India branch in Dhadgaon village, Maharashtra. (Photographer: Dhiraj Singh/Bloomberg)

Banks To Launch First Phase Of Customer Outreach Loan Initiative On Oct. 3

Bookmark

The state-owned banks and several private sector financial entities are gearing up to launch first phase of 'customer outreach initiative' covering 250 districts on Oct. 3, for providing loans to retail customers and micro, small and medium enterprises, to meet festival time needs.

During four-day period beginning Oct. 3, loans will be provided for retail, agriculture, vehicle, home, MSME, education and personal needs of consumers.

The second phase will be in 150 districts and will be held between Oct. 21 and Oct. 25, just before Diwali, sources said.

This is part of the systematic bank reform process which envisioned taking banks to doorsteps and increasing ease of customer access and delivery of services, sources added.

During the annual performance review earlier this month, public sector banks decided to undertake outreach exercise in identified 400 districts. Later, private sector too expressed their willingness to join the initiative.

These camps will provide a one stop destination for MSMEs, small retail businesses and end customers to access all bank services, especially loans in auto, home, personal and business section.

While at one level it will help businesses to gear up for the festive season, it will also provide ready cash in the hands of the consumers.

Needless to say, all prudent financial norms and due diligence will be followed by public sector banks while disbursing loans, the sources said.

Also read: Private Banks To Join Loan Melas In ‘One Country, One Financial System’

Awareness camps will be held in these districts to let people know about the event.

For spreading information, the sources said, local vendor associations, commercial organizations and chambers of commerce may also be engaged to spread the message among merchants and customers.

In line with the government's thrust on Digital India, the initiative will focus on financial inclusion schemes and digital payment methods so as to encourage consumers and merchants to increasingly shift to these payment modes, the sources noted.

Apart from PSBs, non-bank financial companies, housing finance companies, microfinance Institutions, Small industrial Development Bank of India and private sector banks can also participate in the scheme.

Also read: PSU Bank Mergers May Weigh On Credit Growth, Says India Ratings

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.