When Regional Rural Banks were established in 1970/80’s, people might not have had the slightest idea the ripple these banks would create in the banking industry and the impact they would have on the rural scene. The initial period was marked with innumerable challenges as the RRBs had to deal with the illiterate for whom superstitions mattered most.
It was indeed an uphill task for these banks, as they were expected to play the role of not just a banker but also a friend, philosopher and guide, leading them on the path of development.
These banks have been striving hard to bring the poor to the mainstream of society. In such an effort, the Karnataka Vikas Grameena Bank (KVGB) in Dharwad, a leading RRB in the State, has been successful in bringing rag pickers under the banking fold and helping them to come out of the clutches of money lenders.
As we all know, the profession of rag picking is carried forward from generation to generation. The plight of the aged is grave and children sometimes grow into antisocial elements.
Education and medical facilities are a luxury they can ill-afford. Their hand-to-mouth existence gives rise to money lenders and a major portion of their earnings goes towards interest payment for the loans they have taken.
And, life drags on pathetically. With 'savings' being an unknown word, how can the quality of their lives improve?
A few months back, the KVGB decided to give them an honourable existence. The bank Chairman M Dhananjaya and Public Relations Officer Ullas Gunaga took up the cudgels to realise their dream. Laxmisinganakere is the dwelling place of rag pickers who belong to the Gosavi clan. The colony comes alive only after five in the evening.
Mr Gunaga visited the colony after office hours everyday and gained entry into the colony with the help of Geeta Patil, a tea stall owner. He familiarised himself with the rag pickers’ joys and sorrows. Some of them were already in the clutches of money lenders and badly needed an escape route.
The importance of savings was drilled into their minds. How to invest? What is the rate of interest? Meaning of a pass-book. How to deposit cash and withdraw money from the bank? Is the hard earned money safe in the bank? These were some of the issues discussed almost on a daily basis.
After nearly a month of persuasion, about a hundred members were proud owners of SB accounts. Their shy nature prevented them from going to the bank and the business hours of the bank did not suit them as they are also out on their jobs at that time. Thus, the Samudaya Bhavan in the colony turned into a temporary bank.
Collecting savings, filling challans, depositing the collected amount in the bank and getting the pass-book updated were jobs entrusted to Geeta Patil.
Self-help groups
Two self-help groups have also been formed, comprising 28 and 15 members respectively, of those who have savings bank accounts and a good idea of the importance of saving. Both these groups were recently linked to bank credit. The loan amount sanctioned is distributed to the individual members by the group. These two groups are very disciplined and meet regularly at the Samudaya Bhavan.
Since the rag pickers are busy at their work during the bank's business hours, four literate women trained at the hands of Geeta Patil have been given ATM cards to facilitate rag pickers to withdraw money whenever they want.
Education to children, insurance and extending the Government schemes of pension to widows and retirees are some of the issues that the bank plans to tackle next, says Mr Dhananjaya.
