More branches in Tamil Nadu due to higher money circulation: P Chidambaram

Finance Minister P Chidambaram today said money circulation in Tamil Nadu "is much more compared to other states," justifying opening of more branches in the state to regulate and channelise the money supply.

"The money circulation in the country as a whole is good...it is good to have money circulation. The Banks played a key role in the money circulation by offering various services to regulate and channelise them," he said, declaring open the branches of the United Bank of India at Nattarasan Kottai and Ilayangudi here.

If the banks had not been opened, money supply would not be so good, and people would be suffering at the hands of the usurers who would charge 35 to 40 per cent interest, he said.

He said it was necessary to end usury (the practice of giving loans at an exorbitant or illegally high rate of interest), and for that and for building business and industry many more branches needed to be opened. The banks give a fair interest for depositors and also for the debtors.

Chidambaram said people would realise at some point of time that the opening of large number of branches by the UPA government was a great achievement.

He said the country's economy is being managed by the Finance Ministry, and the banks functioned as the heart of the Finance Department. "Like every part of banana and coconut tree are useful for men, the banks are useful for the government," Chidambaram said.

He said banks had given education loan to the tune of Rs 56,000 crore in the UPA period.