Bhagalpur, April 21: National Bank for Agriculture and Rural Development (Nabard)’s proposed Invest India Micro Pension Service (IIMPS) has spread hope among a large number of poor people in rural areas.

Nabard’s financial department at its head office in Mumbai, has sanctioned Rs 2.25 crore to IIMPS, a Delhi-based body to pilot the project that would provide micro pension to poor people in villages at affordable premiums. The body would also be responsible for easy operations for the poor and the uneducated.

The project has been sanctioned for eight districts in four states — Puri and Mayurbhanj in Orissa, Rae Bareli and Moradabad in UP, Madurai and Cuddlore in Tamil Nadu and Bhagalpur and Darbhanga in Bihar — in the initial phase.

A workshop was organised to educate people about the pension scheme. Aashish Agarwal, executive director of IIMPS, through PowerPoint presentation explained the need for the project.

In the presentation, he said: “People in rural areas, especially farmers and self-help group members earn livelihood through labour. Once they reach old age there income generation stops and they need a support where they can get money without working.”

Under the scheme, IIMPS, through channels like NGOs and bankers, would link the potential beneficiary to a bank through no-frills account.

The no-frills account will act as means to deposit the premium for micro pension, which will be transferred to UTI Asset Management Company, the recognised managers of the pension fund. Based on the age at the time of joining the scheme and quantum of premium, the beneficiary will decide for a pension structure after a certain age.

By September 2011, the first beneficiary would be covered under the micro pension programme, said officials of Nabard. After a national-level stakeholders’ meeting in Delhi, a local stakeholders’ meeting was held in Bhagalpur on April 20.

Various NGOs working as Nabard’s partner agencies in Bhagalpur, working with self-help groups, farmers’ clubs participated in the meeting that was also attended by senior bankers.

P.S. Dolas, the deputy general manager of Nabard Bihar regional office, B. Saran, assistant general manager, SBI, S.K. Kar, general manager Bihar Khetriya Gramin Bank, I.K. Tyagi, chief officer, UCO Bank, Mukteshwar Malviya, lead district manager, Bhagalpur, district coordinators of SBI and Bihar Khetriya Gramin Bank, director of local self-employment training institute were present at the meet.