I have amazing news to share with you all !

[zootinali]

Congratulations to all indians!

-But still I didn't understand, how this initiative will help in lowering poverty rate. I mean how can a poor person will get money out of his empty account?
-And secondly what will be the interest rate of these banks? Will the interest rate not be a burden on the poor people? If there is an interest rate then I am afraid this is not a good development as it will further snatch money away from poor people. Plus I may be wrong but I think the banks are only looking for their own benefit in this case, as they want more people to open account and through which they will get more money from charging interest on them

no you didn`t understand . The idea is to eliminate corruption while distributing benefits under various govt schemes(MNREGA being one). Earlier people used to get cash directly handed over to them and then made to sign receipts , which owing to illiteracy / ignorance of poor folks, are liable to cheating. Secondly it enables them to take benefit of various govt. and bank schemes like insurance or loan , however small , without having to fall prey to loan sharks and other illegal groups or people. Lastly they get the benefit of getting interest for keeping their money in the bank not the other way around as you mentioned. It will also help the banks and govt because they will have access to large amount of money for investments, which was never available earlier , probably will also help in tracking money laundering (black money) , also probably help in gathering data and policy making to serve better who need it most...and many more possibilities which I can`t think of right now.