Enterprising Indian Street Kids Establish Their Own Bank

By Meera Dolasia on August 12, 2012

CCSS NCSS-3 Word Search

Starting a bank from scratch a child's play? Absolutely, if you ask some enterprising youngsters in India, who have not only managed to establish one, but also, unlike many of the large International banks, run it successfully since 2001. What's even more impressive is that the young bankers and their 9,000 + clients are all homeless!

The Children's Development Khazana (treasure) opened its first branch in 2001 at a homeless shelter in New Delhi as a way to help the street children protect their hard-earned money from thieves. Since then, the idea has caught on like wildfire.

Today, Khazana boasts of 12 branches all across New Delhi, with a total of Rupees 12 lakh (about 22,000USD) in deposits. Not only that, there are now 77 affiliated branches in other parts of Asia, ranging from Nepal, Bangladesh and Afghanistan to the island of Sri Lanka and even, Kyrgyzstan in Central Asia. While no deposit or balance is too small for the bank, they do have strict regulations about where the money is earned from - Funds obtained by begging or selling drugs are not welcomed at this bank!

Also, unlike the real banks, all employees are volunteers, which means that they go to school or a paying job during the day and work at the bank in the evening. To ensure that everybody gets a chance to participate in running the branch, two volunteer managers are elected from the client base every six months.

Karan, the current manager is just 14-years old. During the day he earns a living by helping out the cleaning crew at wedding banquets and other big parties. In the evening, he handles the deposits and withdrawals, entering each amount painstakingly in their passbook to ensure accurate recordkeeping. After the bank closes, he along with an adult volunteer from the shelter head over to a regular bank and deposit the funds collected into Khazana's interest-bearing bank account.

And, while it started as a way to safeguard hard-earned money, The Children's Development Khazana, is today a full-fledged bank, one where kids can not only deposit money which earns them 5% interest, but also, request loans for family emergencies, entrepreneurial ventures or even, to pay for school.

The terms of the loan depend on the borrowers past payment record. Given that the bank has had very little or no trouble with defaults this, is not a big issue - A sentiment that cannot be shared by their larger counterpart banks that are managed by professionals. Maybe they could use some advice from these Indian street kids.

Resources: rt.com,odditycentral.com,nydailynews.com

Share by EmailShare on FacebookShare on Google+Share on TwitterShare on tumblrShare on StumbleUponShare on PinterestShare on RedditShare on Edmodo
82 Comments
to use your custom avatar.
  • lionsrcute1
    lionsrcute13/22/2014
    Aw.. So cute to see little kids working :D I hope they can find an home.
    • little sprout3/16/2014
      thats amazing how there clients are homeless including themselves
      • gayathri12/24/2013
        good need to encourage in rual areas
        • Potato11/11/2013
          Awesome!!!
          • edmodo-ujztnbwkzx
            Cool
            • tiernan7681
              tiernan768110/22/2013
              cool kids own a bank more kids should get jobs like this
              • jasminek
                jasminek10/2/2013
                I think this helps me save my money because I have wasted a lot too. I am happy that these boys have found a way to improve their lives. They dont complain, they change it. I think this helps me to look at things I can do to improve my life too.
                • npriest
                  Awesome comment Jasmine. This is very thoughtful and reflective about what you can do!
                • delen
                  delen10/1/2013
                  thats nice
                  • I love jb 9/30/2013
                    it is awesome
                    • braxdelax
                      braxdelax9/9/2013
                      cool

                      Vocabulary

                      affiliatedenterprisingentrepreneurialimpressivepainstakinglyparticipateprofessionalsregulationsrupeessafeguardvolunteer

                      Geography

                      AfghanistanBangladeshKyrgyzstanNepalNew Delhi, IndiaSri Lanka

                      Most Popular Articles

                      Incredible 'Tree Of 40 Fruit' Lives Up To Its Name
                      Our Disappearing Birds
                      Our Disappearing Birds
                      Clever Koalas Hug Trees To Beat The Heat
                      Minecraft As A Mandatory Subject In School? Sweet!
                      Boo Mania Sweeps Over America (And The World)!
                      Are You Ready To 'Gangnam Style'?
                      Video Of The Week - If Frozen Was A Horror Movie . . .

                      Latest Comments

                      desert eagle wrote:

                      if it was kfc i would be the best
                      Joey Chestnut Wins Hot Dog Eatin...

                      wow wow girl wrote:

                      awesome thats really cool but iv...
                      Coming Soon - A Zero Gravity Rol...

                      CupCakeQueen wrote:

                      O my gosh. It is soooo big i wan...
                      Now This Is A Swimming Pool!

                      The Dino Team wrote:

                      fun :3
                      Mining Cavern Transforms Into Wo...

                      ALA