Saturday, January 8 2005 16:55 Hrs (IST) - World Time -

Nagapattinam: A clutch of banks, led by Indian Overseas Bank and Indian Bank, are taking the lead in providing a hassle-free banking to help the tsunami-devastated community deposit the relief money, given by the Government, into the safety of bank accounts.

The Government's relief amount of Rs one lakh each, in case of a death in a family, is given as cheques to the victims, most of who do not own a bank account. The Reserve Bank of India (RBI) has opened a special cell under the chairmanship of P M Rajagopal, lead district officer, RBI, in Nagapattinam to guide the banks in helping the victims.

"We have given instructions to all banks to provide hassle-free banking to the victims," said Rajagopal.

Over the last few days, over 1000 bank accounts have been opened by Indian Bank, Indian Overseas Bank, State Bank of India in the public sector and Tamil Nadu Merchantile Bank and Lakshmi Vilas Bank in the private sector.

Since taking charge of the special cell, Rajagopal along with the Nagapattinam Collector M Veerashanmugha Moni had held a meeting of Special District Consultative Committee to instruct banks to assist the victims.

"The managers of the banks have been told to be present at the site where the cheques are distributed to the victims." Rajagopal said.

The banks were also taking the lead in giving Rs 3000 as 'consumption loan' to the victims. The amount under 'consumption loan' was earlier fixed at Rs 1000. This was raised to Rs 3000 per person due to the tsunami, he said.

According to G Jayachandran, senior regional manager, Indian Overseas Bank, the bank alone had opened over 200 new accounts, depositing Rs 232 lakh from the victims.

''We have decided to relax the account opening norms for the tsunami victims. The cheques itself would form the initial deposit for the new account holders,'' he said.

Chennai-based Indian Bank, according to the figures available, opened over 300 accounts in this disaster-hit region.

''Bank accounts will help these poor people from the middle men and touts, who would promise high interest rates, only to cheat them later,'' Rajagopal, who is in the Rural Planning and Credit Department of RBI, Chennai, said.

Many of the bank managers stay at the relief camps during the distribution of cheques, so that the money could be deposited then and there itself, he said.