Bengal plans to quit ‘reluctant’ banks
Sources said Dwivedi is trying to make sure Chief Minister Mamata Banerjee’s pet project, the student credit card, can go smoothly.
Posted on 18.09.21, 01:28 AM
The government of Bengal is considering transferring its accounts from some private and public banks as it has been observed that many of them do not participate in the government’s flagship social protection programs.
In a message to district magistrates, Chief Secretary HK Dwivedi said most private banks do not participate in programs such as student credit cards, self-help group funding and card issuance. credit kisan and that some public sector banks were reluctant to engage in student credit. map scheme.
“Under these circumstances, the state government is considering transferring all the accounts of its various departments, companies, etc. held at all private banks and a few PSU banks, which do not wholeheartedly support the aforementioned flagship programs, to banks whose required support is readily available. FS (finance secretary) is kindly requested to prepare a list of these non-participating banks, ”wrote the chief secretary.
The message is important because more than three million people have visited the recently closed Duare Sarkar camps to enroll in social assistance programs in which the government transfers money to beneficiaries’ bank accounts. “If the government does not get the support of the banks, it is not possible to provide benefits in a timely manner,” an official said.
Sources said Dwivedi is trying to make sure that Chief Minister Mamata Banerjee’s favorite project, the student credit card, can run smoothly. Under it, all students from class XI can get an unsecured loan of up to Rs 10 lakh for education.
“KCC and SHG loans are not a big headache because all PSU banks support them. But the student credit card program is denied by private banks and PSUs, ”a senior official said.
Sources said most banks are concerned about rolling out the student credit card system because it covers all categories of students and there is no guarantor. “Banks are not sure they can collect everyone’s loans. It would have been more appropriate if the government had restricted it (the regime) to certain categories, in particular students of technical subjects, ”said a source.
State government departments, district magistrates and various government agencies keep crores in the accounts of private and public banks before the money is used.
For example, deposits (or guarantees) deposited by entrepreneurs for the realization of public projects are deposited in certain private banks.
“At least a few crores are deposited under this head every day. Likewise, funds from centrally sponsored schemes are held in bank accounts before they are used. In addition, district magistrates often keep unused funds with banks, ”a source said.