Ujjivan Small Finance Bank has made significant strides in financial inclusion with its innovative Micro Deposits programme. The initiative, launched in 2022, was designed to address the issue of inoperative accounts among microfinance customers, who traditionally relied on loans and lacked formal savings avenues. By rounding off EMI payments to the nearest hundred and encouraging the extra amount to be deposited into savings accounts, Ujjivan aimed to cultivate a habit of small but regular savings, similar to the traditional Indian practice of using a Gullak.

The impact of this initiative has been profound. Over 25 lakh dormant accounts have been reactivated and the average balance of customers participating in the Micro Deposit programme is nearly 30% higher than that of non-participants.

Customers have also shown an increased tendency to use digital payment methods, with UPI transactions rising by 2% among those engaged in micro deposits. This has not only encouraged financial literacy but also reduced operational burdens, such as the need for loan officers to handle loose change during collections​.

From a business perspective, Ujjivan Small Finance Bank has seen impressive results, with over ₹100 crore collected through Micro Deposits. The programme has also helped the bank save ₹50 lakh in communication fees by reducing the number of dormant accounts. Ujjivan’s integration of technology, including real-time SMS updates and a seamless user interface, has made the savings process easier and more transparent for customers​.

This initiative reflects Ujjivan’s commitment to empowering underserved communities, encouraging them to build financial resilience through small but impactful savings.