6/24/13 Mrunal [Economy] Urban Financial Inclusion : New Directive of the Government to cut Subsidy leakage Print

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[Economy] Urban Financial Inclusion : New Directive of the Government
to cut Subsidy leakage
Not an article, just some fodder.
1. Urban financial inclusion
2. Rural Financial Inclusion
3. Why does Government want Bank accounts for Poors?
Urban financial inclusion
Government has launched the campaign for Urban Financial Inclusion
Union finance ministry >> The department of financial services.
This department, has directed all banks to do following
1. open at least one bank account for every family in urban areas living below
poverty line in urban areas.
2. capture biometric information for all such account holders.
The responsibility of enrolling families would lie on the bank branch in every
ward or circle of a municipal corporation.
In case there is no bank branch in a particular ward or circle, the responsibility
would be given to the neighbouring bank branch.
Rural Financial Inclusion
Earlier, the same department had directed banks to open at least one bank
account for every family living in financial inclusion villages.
Why? = To directly transfer MNREGA wages, Widow Pension etc. into the
bank account.
Why does Government want Bank accounts for Poors?
Government wants to cut down leakage of subsidies and limit the total
subsidy burden at 2 per cent of the GDP. (because if lot of crooks are eating
away MNREGA / Pensions etc. in half way, then subsidy bill will be high. So
to prevent the crooks, money must be directly sent to bank accounts of Poor
People.)
Therefore in last few months, Finance ministry has undertaken pilot studies
for direct transfer of fertiliser, kerosene and LPG subsidies.
In the Union Budget 2012-13, Pranab had also announced that the Aadhar
platformwould be used to support the payments made under
MGNREGA,
old age, widow and disability pensions;
6/24/13 Mrunal [Economy] Urban Financial Inclusion : New Directive of the Government to cut Subsidy leakage Print
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scholarships directly to the beneficiary accounts in selected areas.
URL to article: http://mrunal.org/2012/08/econ-urban-fin-inclu.html
Posted By On 04/08/2012 @ 16:03 In the category Economy