Union Bank brings door-step banking in UP

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: The Union Bank of India introduced ‘doorstep banking’ in the rural areas to reach out even to those who do not have a bank account. The bank will leverage on technology through the use of bio-metric smart cards and make use of business facilitators and correspondents.

‘‘Till now, only customers in the metros and semi-urban areas could access banking at their place of work or at their homes. Now this facility will be available to the rural population also’’, a top official of the bank explained.

Bio-metric smart cards will enable even those who cannot read or write to open and operate a bank account with the Union Bank. The bio-metric card is the same size as all other credit and debit cards. The unique feature is that it is embedded with an electronic chip. This card acts as a customer identity using the finger print of the client as a bio-password.

The card also acts as an e-passbook as it is used for storing data of all transactions. The customer will have access to banking and other financial services and transactions since they will be enabled at any point by the bank’s business correspondent and facilitator using a point of transaction machine which is a hand held device.

This has been made possible because the Union Bank is joining hands with Financial Information Network and Operations Ltd. (FINO) and Cashpor Micro Credit. The Bank has launched a pilot project in Chahania Block in Chandauli district. FINO provides technical support, which enables the bank to leverage on technology to serve the customers. The result is that the bank’s reach is extended even to places where the bank does not have its branches.

The Union Bank of India has financial stake in FINO and this pilot project has been launched in Chahania Block in Chandauli district of Uttar Pradesh. So far 1,000 smart cards have been issued in four villages and the aim is to issue 5,000 such cards initially.