Odisha Launches ‘Ama Bank’ Scheme for Financial Inclusion in Unbanked Gram Panchayats

Bhubaneswar: In a significant move towards financial inclusion, Chief Minister Naveen Patnaik inaugurated the ‘Ama Bank’ scheme aimed at providing banking services through CSP Plus outlets in all unbanked Gram Panchayats (GPs) across Odisha.

Emphasizing the fundamental role of financial inclusion in societal and economic progress, Chief Minister Naveen Patnaik asserted that inclusive growth cannot be achieved without ensuring financial inclusion for all citizens. With approximately 65% of Gram Panchayats lacking a physical bank branch, the ‘Ama Bank’ initiative aims to bridge this gap, ensuring equitable access to banking services for rural communities.

The geographical challenges in expanding traditional brick-and-mortar bank branches prompted the Odisha government to collaborate with six public sector banks, namely SBI, PNB, UBI, UCO Bank, Bank of India, and Bank of Baroda, for the ambitious ‘Ama Bank’ scheme. Designed as a low-cost micro bank branch, ‘Ama Bank’ will operate between Business Correspondents (BC) and small bank branches, offering a comprehensive range of banking services, including deposits, advances, remittances, loans, Aadhar Enabled Payment System (AePS), credit linkage to Self-Help Groups (SHGs), and coverage under social security schemes.

The Chief Minister highlighted the benefits of the scheme, stating, “Senior citizens, differently-abled people, and pregnant women will receive doorstep banking services, ensuring timely and hassle-free access to Direct Benefit Transfer. The scheme aims to eliminate the need for rural residents to travel long distances to avail themselves of various state government schemes, such as Old Age Pension (OAP), KALIA, and MAMTA or to apply for a small business loan.”

The ‘Ama Bank’ initiative will be implemented in a phased manner to cover all 4,373 unbanked Gram Panchayats in the state during the current financial year. The government is providing rent-free banking space for five years and will cover one-time expenses for Fixed Cost and Recurring expenses for a period of three years. A budget allocation of Rs 500 crore has been earmarked for the successful execution of this groundbreaking scheme. In its inaugural phase, 750 CSP Plus outlets, spanning all 30 districts, were dedicated to the people of Odisha, making the state a pioneer in conceptualizing and implementing such a holistic Financial Inclusion initiative.