Hyderabad: Finance Minister Nirmala Sitharaman Saturday held extensive discussions with the top brass of public and private sector banks to ensure that the common man does not face any problems in accessing money during the period of lockdown.
She also directed them to ensure that during the 21-day period money is available at all level, bank branches, ATMs including banking correspondents that serve people in the hinterland and rural areas.
However, in addition to ensuring cash flow, the role of public sector banks is going to be extremely critical in Modi government’s battle against the Covid-19 pandemic as most of the relief measures announced under Rs 1.7 lakh crore PM Garib Kalyan scheme will be implemented through them.
Mindful of the important role played by public sector banks, Nirmala Sitharaman also encouraged them to keep up their efforts while acknowledging their contribution during the conference calls with their top brass on Saturday.
Rollout of Garib Kalyan Scheme depends on govt banks
The government machinery depends on public sector banks for a successful rollout of Rs 1.7 lakh crore economic relief package over the next three months. The package is aimed at reducing the pain of the country’s nearly two-third of the population (80 crore people) that is looking at an uncertain future due to the adverse economic impact of the virus that infected nearly thousand people and has claimed 25 lives so far.
Role of public sector banks is crucial for the success of the nationwide lockdown as cash transfers announced by the government under Prime Minister Garib Kalyan Yojana will be routed through government banks under the direct transfer of benefits (DBT) scheme.
“The government will rely on public sector banks to transfer money to over 20 crore PMJDY account holders as 95% of PMJDY accounts are with us,” a senior public sector bank official told ETV Bharat requesting not to be named.
What could be routed through public sector banks
There are over 38.28 crore PMJDY accounts in the country with an aggregate deposit of over Rs 1.18 lakh crore. 53% of these accounts belong to women that will receive Rs 500 per month for the next three months under the government scheme to provide disposable cash in their hands during a prolonged lockdown period.
In addition to this, one time ex-gratia payment of Rs 1,000 to 3 crore poor senior citizens, widows and disabled persons will also be transferred through banks.
