MICROCAPITAL BRIEF: Hindustan Co-operative Bank (HCBL) of India Provides Bank Accounts to Beggars

Hindustan Co-operative Bank  (HCBL), a bank in India, recently announced that it is providing bank accounts to “beggars” and other poor urban residents such as rickshaw drivers and artisans in order to increase financial inclusion in the country. The bank has opened 160 accounts for beggars in the city of Lucknow since 2013 [1]. The innovation is made possible by the new “Know Your Customer” rules, established by the Reserve Bank of India, that recently have been relaxed to allow financial institutions to verify customer identification without an official identification card [2]. Customers can now simply provide information their address, birth date and a recent photo in order to open an account. Financial information on HCBL is not available.

By Megan McGowan, Research Associate

About Hindustan Co-operative Bank (HCBL):

Hindustan Co-operative Bank (HCBL) is a co-operative bank that opened in the city of Lucknow, India in 2002. As of January 2013, HCBL has seven branches. Financial information on HCBL is not available.

Sources and Additional Resources:

[1] Business Standard: “HCBL Bank targets beggars for financial inclusion,” November 26, 2013, http://www.business-standard.com/article/finance/hcbl-bank-targets-beggars-for-financial-inclusion-113112600781_1.html

[2] Reserve Bank of India: “Know Your Customer Guidelines,” http://www.rbi.org.in/scripts/FAQView.aspx?Id=82

MicroCapital: “Deutsche Bank Secures $75m for Microfinance Enhancement Facility for On-lending to Micro-, Small Enterprises,” December 31, 2013, https://www.microcapital.org/microcapital-brief-deutsche-bank-secures-75m-for-microfinance-enhancement-facility-for-on-lending-to-micro-small-enterprises/

MicroCapital: “Aavishkaar Goodwell, Asia Pragati Invest $3.4m in Swarna Pragati Housing Microfinance in India,” October 16, 2013, https://www.microcapital.org/microcapital-brief-aavishkaar-goodwell-asia-pragati-invest-3-4m-in-swarna-pragati-housing-microfinance-in-india/

MicroCapital: “Malaysia’s Perak State To Introduce Microfinance Programme That Will Target The ‘Hardcore Poor’ And Broadly Adopt Grameen Principles,” October 27, 2009, https://www.microcapital.org/microcapitalorg-story-malaysias-perak-state-to-introduce-microfinance-programme-that-will-target-the-hardcore-poor-and-broadly-adopt-grameen-principles/

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