The launch of the Aswenna savings account, designed specially for the farming community, took place recently in Welikanda, Polonnaruwa. Picture shows a farmer receiving his Aswenna account from Hon. Siripala Gamlath, Deputy Minister for Agriculture. Hon. Amir Ali, Minister for Disaster Management and Mr. W. Karunajeewa, Chairman, People’s Bank are also in the picture.

Both foreign banks and these banks paid a lot of attention to large scale landowners connected to the plantation economy. The then government which understood this situation, wanted to create a bank that catered to the rural people. People’s Bank, created as a result of this, has always been a strength to the local agricultural economy and been committed to the development of it.

The People’s Bank act states the need to release rural people from debt, and has accordingly done a great service by giving them loans through cooperative societies for their agricultural activities. The Bank has taken steps to go to the farming community itself and provide banking facilities, by introducing various loan schemes such as the rural investment loan scheme. People’s Bank recently introduced a new savings account targeting the farming community, named ‘Aswenna.’ It is called ‘Aruwadei’ in Tamil.

The launch of Aswenna, the new savings account, took place recently in Welikanda, Polonnaruwa at a grand ceremony. Generally, farmers receive an income either during the ‘yala’ and ‘maha’ seasons or the times when subsidiary crops yield their returns. The Aswenna account has made provisions for them to save according to these income patterns. People’s Bank states that the aims of introducing the Aswenna savings account are to inculcate the savings habit and to create an environment of financial control. The Bank hopes to give the farming community greater benefits through the Aswenna savings account.

Small, medium and large scale farmers can join this scheme. An Aswenna savings account can be opened with an initial deposit of Rs.1000/=. While a normal account at People’s Bank gives a 6% interest rate, the Aswenna savings account gives a special interest rate of 6.5%. Additionally, those accounts that maintain a balance of Rs.10,000/= at the end of each month will be entitled to a special bonus interest rate. Another specialty is that all these interest rates are calculated monthly and credited to the account. While account holders can receive loans up to the value of 90% of the account balance, a special feature is that the additional interest rate is only 1%. Normally, loans taken under the other savings accounts of People’s Bank contain an additional interest rate of 2.5%. Priority will be given to Aswenna account holders in receiving loans such as rural investment loans and Krushi Navodaya. They can also receive loans up to ten times the value of their account balance. Those who maintain a balance of Rs.50,000/= for a period of six months will be entitled to a free minor’s account with a Rs.500/= deposit as a special benefit.

People’s Bank has introduced Aswenna as a way of honoring the farming community. No bank has so far introduced such an account for farmers. The Bank has previously introduced account schemes for those in various professions, and believes that Aswenna will make a great contribution to the agricultural economy.

The Aswenna account, first introduced in the North Central province, has received much positive feedback, and the Bank hopes to take it to other areas using its vast network of branches and service centers. The Bank is working specially to uplift the living standards of the farming community, through introducing this scheme to areas such as the Northern, Northern Central, Eastern, Southern and North Western provinces, where agriculture is most widespread.