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Banks get electoral rolls to create Aadhaar accounts

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:41 hrs

pThe government is using electoral rolls to open bank accounts in the 51 districts chosen for the roll-out of the direct cash transfer of subsidiespp&ldquoBanks have been given electoral rolls in rural areas and they have to ensure that per family at least one account is opened&rdquo a senior bank official saidppPublic sector banks have been asked to open the bank accounts by December 15 The accounts would be used to transfer cash subsidies directly to beneficiariesppThe accounts were to be opened using Aadhaar cards on which the much touted subsidy transfer scheme is based But the government seems to prefer voter identification cards The government had claimed that the 51 districts were chosen for the scheme based on at least 80 per cent coverage of issue of Aadhaar cardsppFor banks the challenge is dealing with the shortage of business correspondents BC in rural areas The BC model is yet to be stabilised the banker said and the cash transfer scheme was based on that model Efforts were on he addedppThe chairman of a public sector bank said &ldquoGetting BCs is not very difficult but the rate of attrition is very high due to availability of better job avenues&rdquoppPoor mobile connectivity and communications are also major problems that hamper the banks&rsquo work in rural areasppThe government is pushing the banks hard to have all infrastructure in place for the roll-out of the scheme before December 15ppThe chairman said banks were ready with the technology infrastructure and testings are on &ldquoWe hope that everything would be in the place before the D-Day&rdquoppYesterday K V Kamath non-executive chairman of ICICI Bank and chairman of Infosys said &ldquoThe scheme will change the budgetary process in the country it will change our deficit process and it will make a huge lot of good as money goes into the hands of people There will definitely be hiccups in the initial days of the implementation of the scheme&rdquoppHe expressed confidence that the banks had the necessary systems and support to make it a success a view public sector bankers also supportedp

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