Finance

Fin Min asks banks to ensure smooth transfer of Rs 500 to women Jan Dhan account holders

Updated : March 27, 2020 06:13 AM IST

Banks have been asked to ensure adequate liquidity at all branches and regularly replenish ATMs

With the Finance Minister announcing an ex-gratia payment of Rs 500 per month for the next three months to all women account holders of the PM Jan Dhan Yojana, the onus to ensure a smooth transfer to 20.40 crore beneficiaries now lies on banks.

The Department of Financial Services of the Finance Ministry has written a letter to the heads of all public and private banks to ensure the entire sum of Rs 30,600 crore is transferred smoothly to the intended account holders. This letter has been reviewed by CNBC-TV18.

The DFS has asked banks to draw a list of beneficiaries and forward it to DFS on March 26 itself, and to prepare detailed plans in consultation with state governments and district authorities to ensure smooth withdrawal for the account holders. Additionally, banks have been asked to ensure adequate liquidity at all their branches and with business correspondents, and to regularly replenish ATMs to meet requirements, or arrange mobile ATMs if need be.

As per the letter, banks are required to alert beneficiaries regarding the time schedule for withdrawals, and encourage them to use digital means as far as possible.

A banking executive at one of the country’s largest banks told CNBC-TV18 that while the measure is welcome, the implementation may pose challenges in terms of ensuring social distancing with customers rushing to branches.

He said, “If people start lining up at branches in hoards (to withdraw money from their accounts), then how do we manage social distancing? How do we manage deployment of so much staff to be able to handle crowds?”

Banks have been operating branches for limited time periods and only for essential services amid the coronavirus outbreak to minimise the chances of virus spreading. As per bankers, few branches are being kept shut and others are being operated as per directions of district authorities.

Fin Min asks banks to ensure smooth transfer of Rs 500 to women Jan Dhan account holders

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