Visit ration shops in TN to open Co-op bank accounts; get loans hassle-free

CHENNAI: In a novel initiative that could increase the reach of Central Cooperative Banks, the State Cooperation Department has decided to make it possible for the public to open accounts in the bank through Fair Price Shops. It has also decided to use the lure of various central and State loans to improve patronage for the bank among entrepreneurial minds among rural youth.

N Subbaiyan, Registrar of Cooperative Societies, has written to the Additional Registrar (Chennai region), and all Regional Joint-Registrars and Managing Directors of all Central Cooperative Banks, asking them to take steps to open savings accounts in the Central Cooperative Bank branches in their respective areas through Fair Price Shops.

In the circular, the Registrar also directed them to devise a new banking scheme to attract and enrol a large number of youth into cooperative banks. "While the average age of Central Co-Operative Banks' customers stands at 53, it is necessary to attract more youth into our banks. Take steps to open new savings accounts/current accounts/Fixed Deposit accounts through Co-Operative Fair Price Shops across the state," Subbaiyan said in the circular. The Fair Price Shop employees would receive Rs 5 as an incentive for each new bank account.

While the move to use ration shops, arguably the most visible and recognisable symbols of the government, is innovative in itself, the department has not stopped with that.

According to sources, the account opening kit given at the time of joining would contain what is expected of any bank - a passbook, ATM card, cheque book, and manuals on fixed deposit and loan schemes, and e-transaction facilities. But what is added as the cherry on top is the information and offer to facilitate hassle-free, low-interest, and secure loan schemes of the central and State governments (gold, crop, fertilizer, cattle, agriculture, etc.).

A senior Cooperation official said the move is expected to attract more rural youth, who want to become entrepreneurs. "Once they start using the banks and its features, they will tell their family and friends about the benefits that they are enjoying, which in turn could pave the way for them to shift to cooperative banks," a senior official told DT Next.