PM asks ministries to work closely for direct transfer scheme -Governance Now

PM asks ministries to work closely for direct transfer scheme

Asks finance ministry and the Unique Identification Authority of India (UIDAI) to work together to ensure the success of the scheme

PTI | November 27, 2012

With the ambitious direct electronic cash transfer scheme set for a roll out from January 1 in India, Prime Minister Manmohan Singh on Monday directed all the ministries concerned to work in close coordination, particularly with regard to enabling poor people to open bank accounts smoothly.

Prime Minister held a meeting of cash transfer committee to review the progress of the scheme which aims to check pilferage and corruption in distribution of subsidised items by direct cash transfers into the accounts of beneficiaries.

Singh also asked the Finance Ministry and the Unique Identification Authority of India (UIDAI) to work together to ensure the success of the scheme.

"I would expect the Finance Ministry and the Unique Identification Authority to work in close coordination to achieve a collective goal (of financial inclusion)," he said in statement in New Delhi.

The government has planned to roll out the cash transfer scheme in 51 districts from January 1. It would be extended to 18 states from April and the rest of the country later in 2013.

Singh said, "The funds that are provisioned for direct benefits like pensions, scholarships and health-care benefits must reach the intended beneficiaries without delays and leakages.

"Apart from these direct benefits, the government also provides an amount of over Rs 3 lakh crore in subsidies which too must reach the right people."

He also stressed on the need for integrating banking system with the post office network, especially in the rural parts of the country to move closer towards the goal of financial inclusion.

Besides, he asked the UIDAI to ensure that the coverage of Aadhaar is adequate as per the roll out plan and no one is left out, and Aadhaar number should be available on demand if beneficiaries are getting left out.

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