Private sector lender, City Union Bank has also adhered to RBI guidelines for financial inclusion. The bank has also set foot ahead in this regard for spreading banking services to villages having population of 2000 and above, said S. Balasubramanian, Managing Director and Chief Executive of the Bank.

He said that the bank has eyed 42 such villages in Tamil Nadu for spreading financial inclusion by State Level Banking Committee (SLBC).

In the start up phase, the bank has initiated a pilot study in two villages, Paruthiyur in Kodavasal block in Tiruvarur district and Kattuchery in Porayar block in Nagapattinam district, he added.

The bank has finished testing online transaction facility in Paruthiyur village through biometric smart cards in October 2010.

The remaining 19 villages in Tiruvallur, Perambalur, Cuddalore, Karur, Tiruppur, Villupuram and Virudunagar districts will be covered by March 2012.

"We expect to cover 90,000 accounts in villages allotted in a phased manner and will be extending credit to the tune of Rs. 50 to Rs. 70 crore", Mr. Balasubramanian said.

Talking about the business strategy of the bank for this fiscal, he said, "The bank is moving towards transacting a business to the tune of Rs. 24,000 crore this year."