Smt Usha Thorat, Deputy Governor, RBI, inaugurates Allahabad Bank's first Financial Literacy and Credit Counselling Centre

“Samadhan”, the first Financial Literacy & Credit Counselling Centre, promoted by ALLAHABAD BANK, the Oldest Joint Stock Bank of the country celebrating 145th year of its purposeful existence, was inaugurated by Smt Usha Thorat, Dy. Governor, Reserve Bank of India today in Kolkata. Shri K.R.Kamath, Chairman & Managing Director of the Bank presided over the function.

In her address, Smt Usha Thorat expressed her happiness for this great initiative that Allahabad Bank has taken for the noble cause of Financial Literacy and Credit Counselling for the people at large of the city for extending guidance to the distressed borrowers as also towards successful implementation of Financial Inclusion and Inclusive growth. Smt Thorat said that the Reserve Bank of India first initiated this step in 2005 under “Project Financial Literacy” and subsequently asked Banks to set up such Financial Literacy & Credit Counselling Centres in the country with a view to create awareness among the indebted people in distress and help them come out of their problems and manage their personal financial portfolio. A large population of our country remains outside the banking system as they feel shy approaching banks for information particularly in rural areas. These people can now get desired assistance in the form of guidance and counselling from such Centres. The Deputy Governor also expressed her satisfaction for the Allahabad Bank’s initiatives for opening Rural Self Emplyment Training Institutes (RSETIs) for imparting skills to the small entrepreneurs & farmers. She added that the RBI has also taken several measures to create awareness in banking through RBI Stalls, Train exhibition as in Azadi Express, local exhibitions Launch of Financial education site displaying various facilities available, Young Scholarship Scheme etc. to spread financial literacy. Smt Thorat also said such useful Centres should be made operational at potential locations of the country by the banks and complimented Allahabad Bank for its proactive role in this area.

Shri K.R.Kamath, Chairman & Managing Director of the Bank said that Allahabad Bank has been taking leading role in implementing various Social Banking measures to help the down-trodden people who need banking support for their existence and has achieved all targets set by the Government under Priority Sector .The Bank has sponsored Three Regional Rural Banks of which Two are in UP and one is in MP apart from its Lead Bank responsibility in 17 Districts. The Bank has set up four Rural Self Employment Training Institutes (RSETIs) for creating awareness and imparting vocational skill among the rural entrepreneurs. The Bank has also planned to set up another 17 such RSETIs throughout the country shortly. The Bank has today commenced its first Financial Literacy and Credit Counselling Centre in Kolkata as a part of the Bank’s Corporate Social Responsibility. Shri Kamath said that in this era of consumerism, very often the Customers purchase a financial product without knowing or understanding the product features fully and ultimately fall prey to a “Debt Trap”. Financial Literacy will provide familiarity with financial market products, their rewards as well as risks, to enable individuals to make informed choices and to take effective action to improve overall well-being and avoid financial distress. Credit Counselling will help educating the debtor about credit, budgeting financial management and imparting negotiating skill with creditors to work out a proper repayment plan. Common People having limited resources and skills to appreciate the complexities of financial dealings including individuals can avail this facility of Financial Literacy and Credit Counselling free of cost from the Counsellors posted at this Centre. The Centre, the first of its kind in Kolkata, is a non-profit organization and will act independently on its own under the auspices of Allahabad Bank Rural Development Trust.

Publicity Department
Kolkata
26.06.2009