Financial Literacy Awareness Programme held at Rua Bagh

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Gramin Pragati Sangathan in association with NABARD under Financial Inclusion Fund today organized Financial Literacy Awareness Programme at village Rua Bagh, District Udhampur. The objective of the programme was to generate awareness about Financial Literacy among the rural masses.

Manohar Lal, AGM (DD), NABARD, Udhampur was the Chief Guest on the occasion and the programme was coordinated by Om Prakash, President, Gramin Pragati Sangathan (NGO). Residents of the village Rua Bagh attended the programme.

DDM explained the Pradhan Mantri Jeevan Jyoti Bima Yojna Scheme. He said that the scheme will be a one year cover and renewable from year to year. All savings bank account holders in the age 18 to 50 years in participating banks will be entitled to join. Benefits: Rs.2 lakhs is payable on member’s death due to any reason. Premium payable is Rs.330/- per annum per member. The premium will be deducted from the account holder’s savings bank account.

DDM also explained Pradhan Mantri Suraksha Bima Yojna. He said that all savings bank account holders in the age 18 to 70 years in participating banks will be entitled to join. He said that this scheme covers accident risk. Benefits of the scheme include Rs. 2.00 lakh in case of death, Rs. 2.00 lakh in case of total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot and Rs. 1.00 lakh Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot. Premium payable is Rs.12/- per annum per member. The premium will be deducted from the account holder’s savings bank account.

DDM, NABARD informed the participants that the Government of India has initiated the process of Direct Benefit Transfer (DBT) under which most of the subsidies would be given in cash and would be transferred in the bank accounts of the heads of respective families. Therefore, all rural households must have a saving account with the banks. They were informed that such savings kept at home as idle funds lose their value in view of the inflation. Further, it was informed that idle funds / savings kept at home in cash do not earn any interest income and hence the value of such money is eroded on account of inflation.

Om Prakash guided the participants about SHGs and said that the objective of SHGs is empowerment of women by engaging them in income generating activities with the help of bank credit. Initially the members avail small loans for consumption needs. However, in the long run the objective is empowerment of rural women through SHGs by engaging them in economic activities with the help of bank loans. The second and subsequent loans are larger in size as the SHG matures over a period and understands to manage the funds in better way. It is pertinent to mention here that the loans to SHGs are given without any kind of security. Recovery of loans under SHGs promote with assistance from NABARD is more than 100%.

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