FM asks banks to gear up for Cash Transfer Scheme roll out

Finance Minister P Chidambaram asked banks to gear up for implementation of the ambitious cash transfer scheme, which seeks to transfer money directly into beneficiary accounts in 51 districts from January 1.

"There is lot of work to be done from January 1. There are huge burden, huge responsibility going to fall on your shoulders. It is banks that have to make cash transfer scheme successful. I know you can do it," Chidambaram said at a function of Central Bank of India.

The government has proposed to roll out the direct cash transfer (DCT) scheme meant for providing subsidy and other welfare schemes to the desired beneficiaries by transferring money to their Aadhaar-enabled bank accounts from January 1.

The direct cash transfer scheme has been introduced to prevent leakages and corruption

in implementation of social welfare related schemes. The government has identified 51 districts in 16 states for the roll out of the scheme.

The project had started in Alwar district of Rajasthan on a pilot basis in December 2011. The government had reportedly received complaints about direct cash transfer scheme for beneficiaries of kerosene oil subsidy in Alwar.

Chidambaram further said, "Just as education is a right, just as speech is a right, just as work is a right, banking services is a right of every individual."

Banks are not doing favour when they provide banking services, he said, adding, they are discharging their duties.

"It is your right to demand that banks discharge their duties. It is right of every young boy or girl in this country to demand that he or she is qualified to pursue higher education and he or she should be given education loan," he said.