Even as government bodies are exploring options to encourage people to take Covid jabs, a regional rural bank in Kerala has come out with a novel motivational incentive by offering an additional interest rate on the deposits for its customers.

The product – KGB Kavacham – introduced by the Malappuram-headquartered Kerala Gramin Bank in this regard has started receiving overwhelming customer response since its launch on July 1 that helped the bank to garner additional ₹500 crore deposits till September.

The cumulative deposits opened under the scheme, according to bank officials, will fetch an interest rate of 5.55 per cent, which is higher than the prevalent rate of interest for the same period for normal deposits opened for 15 months by 0.25 per cent

“We joined hands with the government’s Covid vaccination drive by launching this deposit scheme linked to vaccination. It is intended to motivate people to get vaccinated,” KR Bindu, Assistant General Manager, Kerala Gramin Bank, Malappuram told BusinessLine .

Innovative approach

Vaccine hesitancy, reportedly, has resulted in lower turnout of people in Malappuram district compared to other districts in the State which prompted the bank to come up with an innovative idea. “The success of our scheme is evident from the deposit collections,” added Bindu.

This is for the first time in India a rural bank is drumming up support for the government’s vaccination campaign, according to Bindu, and KGB Kavacham is a distinct effort to salute all who braved the trauma and setbacks caused by the Covid pandemic, she added.

Those who have taken a single or double dose of the Covid-19 vaccine are eligible for the bank’s deposit scheme. Besides, the bank has also rolled out a special term-deposit scheme – KGB Platinum – to commemorate the platinum jubilee celebrations of India’s independence – offering a higher interest rate of 5.60 per cent for deposits made for 775 days.

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