RDB offers variety of financial solutions to its customers
The Regional Development Bank (RDB) which was established with the objectives of enhancing the regional development of the country and to provide finance facilities for the new entrepreneurs, has a proud history of three decades of history having won the confidence of rural people. Established initially as a bank operating on district basis by a Parliamentary Act, later it was transformed to a development bank merging all the provincial institutes operating on provincial basis until it emerged as a national institute in 2010 with its popularity among the people. In an interview with RDB Credit and Recovery Deputy General Manager A.H.M.M.B. Jayasinghe, more information about the bank was shared. Following are excerpts from the interview.
Can you briefly explain the present stability gained by the bank with the achievement made during last three decades?
The achievement of national status by an institute initiated with the basic objective of strengthening of the rural livelihood with their own commitment and aspiration is a matter of pride, not only to the RDB but also to the whole country.
Today, we provide bank services for six million clients through our network of 274 branches across the country.
Our stability enables us to take over the Lankaputhra bank network under our administration which helped RDB to expand fast bringing it to the third largest network bank in the country.
What are the salient features you possess to attract the rural people and to become popular among them?
The main factor is our ability to identify the proper needs of the rural people and introducing appropriate fast solutions to satisfy their needs. Our success to directly access them was most significant at this time. Besides, our management network structure is actively operational and wide spread in the rural areas. We have also delegated the authority to our district and provincial institutes to take appropriate decisions.
Obtaining people’s confidence on our services has also led to the rapid expansion of our bank throughout the country.
Tell us in nutshell about the loan facilities provided by the bank for rural people?
We have arranged various credit facilities to cater to the need of all from lower income earners to those of high income. These loan schemes are operated from two sources of fund. The main source of finance is from our capital, profit and savings accounts. The other method is source of refinancing.
Two interest policies are applicable for loan granted from bank’s own resource under the normal bank interest rate or on the basis of part of interest being paid by other institutions.
For loans facilities from funds of other sources interest rates are fixed on negotiations. These loans include microloan facilities for small and middle business organisations, Saubhagya,
Swashakthi, loan schemes and self-employment development, Kapruka, Coconut cultivators’ loan scheme, Krushi Shakthi loan schemes.
What are the various accounts maintained by the bank?
A: We are operating various fixed and savings accounts for the customers from childhood to senior citizens. RDB maintains accounts like ‘kekulu’ children’s saving account, RDB Liya
Saviya Plus, RDB Dorin Dora, RDB New Life pension scheme account and several more saving accounts with attractive interest rates and rewards.
Under the children’s accounts scheme special reward methods and pricing schemes have been introduced. Loans are provided under the Liya Saviya scheme with low interest rates and on single surety.
‘New Life’ is a pension scheme including several more benefit for the elders.
What are the social implications of service provided by the bank?
The empowerment of our customers is a very crucial factor. Under the micro finance system introduced, we have been able to provide finance facilities to small groups of women serving as mutual sureties to each other. We as a bank provided them with some funds and that were later given as loan to the group members on a low rate interest. This has helped them to form firm business institutes. While dealing with loan facilities, they are allowed to take their own decisions. These practices have helped them to be familiar with bank activities and to be strengthened economically.
In conclusion, all these achievements have created a suitable environment for the attainment of our objectives.