Nation Other News 20 Nov 2016 After Demonetisation ...

After Demonetisation: ‘Home safe’ now deprived of cash

DECCAN CHRONICLE. | R AYYAPAN
Published Nov 20, 2016, 2:04 am IST
Updated Nov 20, 2016, 7:11 am IST
Under the system, a small collection box is kept in the home where the monthly savings of the household is deposited.
Representational image
 Representational image

THIRUVANANTHAPURAM: Demonetisation has badly hit the hugely popular ‘home safe’ (bhandara petti) system, a thrift mechanism for rural households put in place by primary cooperative societies in the state. Monthly collection has stopped and, because primary societies have been deprived of cash, hundreds of ‘home safe’ accounts stand virtually frozen. Rural folks who approached societies after November 8 to withdraw small amounts for household emergencies like a hospital visit are being sent back empty handed. ‘Home safe’ accounts are nothing but monthly household savings deposited in cooperative banks, and are usually withdrawn to meet medical, school or marriage expenses.

‘Home safe’ system is an additional savings mechanism for rural households which already contribute to self-help neighbourhood groups like Kudumbashree. “There is deep concern among people that the money they have painstakingly saved over the years will be lost,” said Mr Clement, the president of Vithura Cooperative Society. Under the system, a small collection box is kept in the home where the monthly savings of the household is deposited. By month end, a collection agent arrives, opens the box, counts the money, enters the amount in a log book and gets it signed by the depositor. On an average, each primary cooperative society has 5000 ‘home safe’ accounts. Certain societies, for instance Chirayinkil Service Cooperative Bank, have over 20,000 ‘home safe’ accounts, and have employed over 20 collection agents.

 

“The system is ideal for people who find the process of opening a bank account quite cumbersome,” said Mr Anil Kumar, the secretary of Chiriayinkil SCB. “Not only do they save, they get a 9-10 percent interest on their savings. And like any savings bank account, they can withdraw money whenever they want,” Mr Kumar said. Cooperative banks, too, stand to gain. “It improves our deposit base,” Mr Kumar said. “Since these are small amounts, withdrawal by individuals will not hurt the banks the way the withdrawals of large depositors would,” he added.

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Location: India, Kerala




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