Kerala school’s student-run ‘Vidya Bank’ turns classroom lessons into hands-on banking experience

ALAPPUZHA: Learning how a bank works has become an exciting hands-on experience for students of Vellamkulangara Government UP School in Karuvatta, Haripad, where a pupil-run initiative called ‘Vidya Bank’ is turning lessons into real-life experience.

The facility allows students, who perform its everyday functions themselves, to experience the world of banking. In the first month of its operation, the bank collected Rs 9,400 in deposits from students.

The initiative is linked to a class 6 lesson referred to in the social science textbook under the chapter ‘Let’s Save for the Future’, which introduces students to the banking system. “Instead of limiting learning to classroom sessions, Vidya Bank gives children an opportunity to put their knowledge into practice,” said V Rajaneesh, a teacher and convenor of the school’s Social Science Club.

“From opening accounts and accepting deposits to maintaining records, processing withdrawals and taking turns as bank managers, students handle the various operations of the bank. The experience helps them understand how banks function while developing a sense of responsibility, accuracy and financial awareness,” Rajaneesh said.

The bank welcomes account holders from pre-primary to Class 7, as well as teachers. To open an account, applicants must submit a copy of their Aadhaar card, two photographs, along with a completed KYC form.

The bank provides passbooks, deposit and withdrawal slips, and KYC update forms, giving customers an experience similar to that of a regular bank.

Vidya Bank operates on school days from 9.15 am to 9.45 am and from 1.30 pm to 2 pm. A class-wise schedule has also been introduced to ensure that students can carry out transactions conveniently. The initiative has already attracted 54 student account holders, with a total of `9,400 deposited in savings accounts. The bank offers an annual interest rate of 4% on fixed deposits, said headmistress P S Sindhukumari.

For students, the biggest attraction is the opportunity to carry out banking procedures, rather than merely reading about them in a textbook. The hands-on experience has generated considerable enthusiasm among the young account holders.

Vidya Bank offers an innovative model of experiential learning that schools can adapt to help children understand financial concepts, develop saving habits and learn the value of money through practice.

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