An agreement has been signed between SBT and the State transport.
Overcoming several hurdles for over a decade, the Kerala State Road Transport Corporation (KSRTC) will go into “cashless” mode from July 31 as part of streamlining the administrative machinery of the State transport undertaking and adopting e-governance.
All payments, from Rs.1 to Rs.500 crore, in the KSRTC will be through the e-platform (vistar) of the State Bank of Travancore.
An agreement had been signed between the KSRTC management and the bank in this regard.
With this, the salary and other perks of 34,000 employees, 8,000 empanelled staff, and 2,000 casual labourers, besides the pension of 37,000 who have retired from the KSRTC will be paid through banks. Official sources told The Hindu that a trial run carried out by disbursing the salary of 200 higher-division personnel in June was smooth and successful and the nod had been given to switch to cashless mode from July 31. The personnel will get the salary through banks on July 31 and the pension will be disbursed through banks on August 5.
The civil contract and purchases of the State transport undertaking will be through the RTGS mode. The SBT has exempted the KSRTC from the banking charges.
All payments from the KSRTC towards water charges to the KWA and electricity charges to the KSEB will henceforth be through SBT.
The “cashless mode” will ensure more transparency and avoid the present practice of a minimum of two-days-and-a-half for cash transaction at the KSRTC and clearance at various levels, sources said .
As per the agreement with the SBT, the employees will have to open a zero-balance account at their place. The bank will provide ATM, chequebook, and Internet banking facilities. The bank will also give up to Rs.one lakh as loan without salary certificate or surety.
As a goodwill gesture, the bank has exempted the employees from paying the banking charges. The added advantage is a Rs.4-lakh free accident death insurance to the staff.
ATMs in stations
The KSRTC has decided to install ATMs in 70 bus stations across the State. Official sources said SBT would be given preference while granting these ATMs.