Financial inclusion is the delivery of financial services at affordable costs to the sections of disadvantaged and low-income segments of society. SEEDS have been approved as business correspondent by SBI since march 2011. The progress of SEEDS in this respect is a remarkable one. The BC model is in operation at 8 centers and covering 80 villages in 3 blocks namely Kariyapatti, Tiruchuli, and Aruppukottai block of Virudhunagar district.
The villagers in target villages responded well in opening savings account. We also having the customer service point in the targeted villages and we covered so far 25000 individuals through this facility. They can open their account in zero balance and they can daily make a cash deposit and withdrawal cash up to Rs.20000/- in a day.
SEEDS as a business correspondent made significant improvements relating to financial viability, profitability and competitiveness. In the coming years SEEDS proposed to include especially the vulnerable section of the community who are still out of banks fold. And also can make transaction of AEPS, IMPS, Money Transfer, Fund Transfer. We are also distributing financial inclusion card of SBI. The banker did not levy and charge for that card.
Also SEEDS provided micro credit to the members / share holders for Agri. and allied activities for promotion of sustainable and organic agriculture activities. Through this intervention farmers are released from depending on lenders, commission agents, for their financial needs for undertaking agricultural activities. With this support, the farmers did the cultivation activities without any financial business. They yielded more quantity and got good price through the procurement by our FPOs. More over with the live stock activities they earned supplementary income about Rs.4000/- per month.
In this reporting year SEEDS facilitated the FPOs to receive financial support ( Term loan ) from Ananya Finance, Ahmedabad for procurement of agri commodities and to undertake agri business. Through this loan support the FPOs procure the agriculture commodities from FPO Farmer Member / Shareholders. The FPOs gave good rate to farmers more than Rs.5 to Rs.10 per kg rate given by the local traders and merchants. Thus, there was a different revolution in price fixing was possible. The local traders and merchants were intended to give the increased rate to the farmers.