Ama Bank Odisha: A Scheme to Provide Banking Services to the Unbanked Villages

The state government has actively promoted industrial growth through initiatives like “Make in Odisha” and ease of doing business reforms.

Ama Bank Odisha (Our Bank) is a scheme launched by the Odisha government to provide banking services to the unbanked gram panchayats (GPs) of the state, through the Customer Service Point (CSP) Plus banking outlets. The scheme was inaugurated by Chief Minister Naveen Patnaik on Tuesday, November 28, 2023, at the 10th convocation of Pandit Deendayal Energy University (PDEU) in Gandhinagar, Gujarat.

The scheme aims to ensure the financial inclusion and empowerment of the rural population, especially the women and the youth, and to support the socio-economic development of the state.

Odisha

Odisha is a beautiful state located in Eastern India. It is known for its rich cultural heritage, stunning natural beauty, and friendly people. Odisha is also home to a variety of tribes, each with its own unique customs and traditions.

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Odisha’s Economy: A Land of Transformation

Odisha’s economy is a fascinating story of transformation, transitioning from an agriculture-based economy to a hub for industry and services. Here’s a glimpse:

Past and Present:

• Traditionally, agriculture dominated, with rice and pulses as the mainstays. Mining, particularly iron ore and chromite, also played a significant role.
• Today, the service sector reigns supreme, contributing over 50% to the Gross State Domestic Product (GSDP). This includes tourism, IT, education, and healthcare.
• Manufacturing is on the rise, with sectors like steel, automobiles, and chemicals attracting investments.
• Agriculture remains crucial, employing over 60% of the workforce. However, initiatives like Mission Kakudiya focus on diversification and value addition.

Odisha’s economy is on a positive trajectory with a projected GDP growth of 8.3% in 2023-24. Continued focus on attracting investments, skill development, inclusive growth, and sustainable practices will be vital for sustained progress.

Overall, Odisha’s economy presents a dynamic picture, brimming with potential. Its ability to harness its strengths and address challenges will determine its place as a leading economic powerhouse in India.

Ama Bank Odisha: Details of the Scheme

The scheme is a collaboration between the Odisha government and six public sector banks, namely State Bank of India, Punjab National Bank, Union Bank of India, UCO Bank, Bank of India, and Bank of Baroda.

The scheme will cover 4,373 out of the total 6,798 GPs in the state, where there are no bank branches, and where the people face difficulties in accessing the banking services, such as opening accounts, depositing money, withdrawing cash, transferring funds, and availing loans.

The Ama Bank Odisha will establish CSP Plus banking outlets in each of these GPs, which will be operated by the local entrepreneurs, who will be trained and certified by the banks. The CSP Plus banking outlets will offer various banking services, such as savings, current, and recurring accounts, fixed deposits, micro insurance, micro pension, Aadhaar-enabled payment system, and direct benefit transfer.

Ama Bank Odisha will also provide digital and mobile banking facilities, such as internet banking, mobile banking, and Bharat Bill Payment System, to the customers, who will be able to access their accounts and transactions through their smartphones or computers.

The scheme is a collaboration between the Odisha government and six public sector banks, and will cover 4,373 GPs, where there are no bank branches.

Benefits of the Ama Bank Odisha

The scheme will have multiple benefits for the customers, the banks, and the state, such as financial inclusion and empowerment, customer base and deposit expansion, and welfare scheme and program facilitation.

The Ama Bank Odisha will have multiple benefits for the customers, the banks, and the state, such as:

The customers will be able to avail the banking services at their doorstep, without having to travel long distances or incur high costs. The customers will also be able to save their money, earn interest, and get credit for their needs.

The banks will be able to expand their customer base, increase their deposits, and reduce their operational costs. The banks will also be able to comply with the Reserve Bank of India’s norms of opening at least 25% of their branches in the rural areas.

The state will be able to promote the financial inclusion and literacy of the rural population, especially the women and the youth, and to support their livelihood and entrepreneurship. The state will also be able to facilitate the implementation and monitoring of the various welfare schemes and programs, such as the Pradhan Mantri Jan Dhan Yojana, the Pradhan Mantri Kisan Samman Nidhi, and the Pradhan Mantri Ujjwala Yojana.

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The scheme will offer various banking services, such as savings, current, and recurring accounts, fixed deposits, micro insurance, micro pension, Aadhaar-enabled payment system, and direct benefit transfer, as well as digital and mobile banking facilities, to the customers.

(India CSR)