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Finance Minister P Chidambaram will meet public sector banks tomorrow to take stock of preparations in the run-up to the government extending Direct Benefits Transfer (DBT) to 78 more districts in July.
At the meeting with executive directors of state-run lenders, Chidambaram would ask them to strengthen banking infrastructure in these districts, particularly in the areas so far not covered by the banking services, by May 31.
"The finance minister would address the executive directors to re-emphasise the need for preparedness in these 78 districts where DBT would be rolled out next," said a finance ministry official.
Some operational issues related to the seeding of the Aadhaar number with a person's bank account, identification of beneficiaries and inclusion of Liquefied Petroleum Gas (LPG) may also be discussed in the meeting.
The Prime Minister's Office (PMO) has written to the petroleum ministry, asking it to expedite preparations for the roll-out of LPG under DBT in 20 districts from May 15. The PMO has highlighted the need for ensuring consumer database, with marketing companies and bank accounts, is seeded with Aadhaar numbers.
DBT, which involves transfer of cash subsidy directly to the bank accounts of beneficiaries, is an important project of the United Progressive Alliance government, which will face elections in 2014.
On April 1, the finance ministry had already issued instructions to banks for the opening of bank accounts, seeding of Aadhaar and strengthening of banking infrastructure in districts covered under DBT.
The government has told banks that the 43 districts of Phase-I and the 78 districts of Phase-II are taken up on priority for installation of ATMs. Banks have been asked to start identification and preparation of sites immediately so that ATMs at all branches in these 121 districts are operational by June 30.
The lead district manager of the districts concerned, will obtain the list of beneficiaries, with details of bank account and Aadhaar (if available) from district collectors in a format prescribed by the Planning Commission. This would be circulated to the banks concerned in line with their service area.
The banks would seed the Aadhaar number into the bank account of the beneficiaries based on the details received from the district administration or department concerned. Since these agencies would have already verified the Aadhaar number, there would be no need for the banks to reconfirm it.
Banks will undertake a focused programme for issuance of debit cards, particularly to the beneficiaries under the various schemes, so that they are able to draw the benefit as per their convenience.
