Tumkur, Mysore, Dharwad districts are the first beneficiaries

Karnataka is all set to roll out the direct cash transfer scheme, a flagship programme of the Centre, in Tumkur, Mysore and Dharwad districts from January 1.

Under the scheme, subsidies, wages, scholarships, social security pensions under various government-funded schemes are to be directly credited to the beneficiaries’ bank accounts to avoid delay, plug leakages and ensure transparency.

While preparations are almost complete in two districts, there are some last-minute arrangements still to be dome in Dharwad.

All the banks are taking the required steps to ensure the launch of the scheme, M.G. Sanghvi, chairman and managing director, SyndicateBank, and chairman, State Level Bankers’ Committee (SLBC) for Karnataka, said.

The Centre has identified 11 districts in south India for the scheme. In the first phase, the scheme will be launched in 43 pilot districts of 18 States. From April 1, 2013, it will be launched in other districts in the 18 States.

The Union Finance Ministry is directly monitoring the implementation of the scheme.

Linking Aadhaar

“All the banks, in association with Line departments in the three districts have taken steps to open the accounts of various beneficiaries under different schemes on a camp approach with mission mode, and also are in the process of linking Aadhaar numbers to accounts,” Mr. Sanghvi said.

Addressing the 123rd meeting of the SLBC here on Monday, he said banks have conducted door-to-door surveys in their respective service area/wards for opening one account per family based on the electoral roll.

Banks are also taking the help of reputed NGOs in this regard.

The stress is given not only for opening one account per family but also for ensuring that all the beneficiaries under the various schemes identified for implementation, with effect from January 1, 2013, have accounts and Aadhaar numbers are linked to the CBS account, wherever available.

Financial inclusion

Highlighting the theme of SLBC for the current fiscal, Mr. Sanghvi said the banks have achieved 100 per cent coverage of all the 3,395 unbanked villages of over 2,000 population.

Under the population group of 1,600 to 2,000 as per 2001 Census, 1,562 villages in the State, under Swabhimaan Financial Inclusion Plan, have been allocated to the banks based on the gram panchayat model, of which banks have already appointed business correspondent agents for 272 villages up to December 20, 2012.

He also requested the participating banks to provide banking outlets in the remaining villages as early as possible and to extend the required financial services to achieve meaningful and holistic financial inclusion.

Under the Urban Financial Inclusion, the lead district managers have already allocated wards to the banks in urban areas and the SLBC has allocated wards to banks in Bangalore metro. Mr. Sanghvi said 38 unbanked villages, with a population of 5,000 and above, have been allotted to the concerned service area banks for opening brick and mortar branches, of which banks have already opened branches in 30 villages up to November 2012.