Days after the Odisha government reverted to system of physical distribution of cash under social security schemes, Union Education Minister Dharmendra Pradhan on Wednesday said cash payments, historically, have had tendencies to spur corruption, pilferage, and exploitation of beneficiaries by middlemen.
After incidences of elderly persons facing problems of withdrawing their pension from banks as biometric devices failed to read blurred fingerprints, the Naveen Patnaik Government had on May 20 announced that all beneficiaries under Madhu Babu Pension Yojana would be receiving cash on 15 of every month at disbursement places as before.
“Older and disable pensioners, who cannot move to disbursement places, will receive pension at their doorsteps,” said Department of Social Security and Empowerment of Persons with Disabilities. The direction was, however, silent on inclusion of central government components in cash distribution. The cash payment is scheduled to start from the month of June.
Currently, beneficiaries receive their pensions through Direct Benefit Transfer (DBT) mode with assistance getting automatically deposited directly in their respective bank accounts.
In a letter addressed to Chief Minister Mr. Patnaik, Mr. Pradhan said he was worried over Odisha government deciding to make cash payment under social security schemes while discarding DBT strategy.
“This decision, unfortunately, appears to be a step backwards in our collective pursuit of corruption-free governance and efficient public service delivery. Across India, a whopping 48.99 Crore bank accounts have been opened under this scheme, amassing savings of 1.97 lakh crore. In Odisha itself, 201 crore bank accounts have been activated, saving Rs 8,751 Crore for the people of our State,” he said.
“Moreover, 1,45,48,473 Rupay cards have been issued in Odisha for ease of transactions Prime Minister Narendra Modi’s social security schemes such as the PM Jeevan Jyoti Yojana, PM Suraksha Bima Yojana, PM Matru Vandana Yojana, and Old Age,” Union Minister pointed out.
“Under the National Social Assistance Programme (NSAP), approximately 2.99 Crore beneficiaries especially old, widow and divyangjans are being paid monthly pension through their bank accounts. Similarly in Odisha also, 20,95,695 beneficiaries are being provided with benefits through the DBT mechanism,” Mr. Pradhan informed.
“You must appreciate the fact that these significant numbers of beneficiaries are bring disbursed directly to their bank accounts, eliminating any possibility of corruption. It would be encouraging if existing banking correspondents, wide network of India Post and Common Service Centres are fully utilised in disbursement of old age pensions, social security schemes and other financial service within the DBT framework. They promise innovative and efficient ways that the benefits reach the unreached,” the veteran BJP leader urged.
Commenting on the peculiar situation of elderly and disabled beneficiaries being caught in cash payment and DBT mode of payment, Sameet Panda, a Right To Food activist, said, “our studies show elderly beneficiaries were having troubled time in accessing pensions. As their fingerprints got blurred due to growing age, they were facing difficulties in withdrawing pension from banks. Many beneficiaries have no idea if pensions have been regularly deposited in their bank accounts.”
“Now, a set of people will avail cash under State schemes while another group will be paid through DBT mode. It will only add to the confusion on ground,” Mr. Panda said, urging both the governments to find a workable formula.
People on the ground have largely welcomed Odisha government’s decision to pay cash under social schemes. “I receive ₹500 oldage pension every month. Since the biometric device carried by banking correspondents cannot read my fingerprints, I have to go to a bank, six km from my village. I spend ₹100 to ₹150 towards fuel cost and food on person accompanying me,” said Padman Sagaria, Kushmal village under Nuapada district. If authorities start paying cash near the village, it would help save a sizeable part of pension, said Mr. Sagaria.
Similarly, Govinda Bag from Boden block of Nuapada district, faces similar crisis. “The DBT scheme does not suit everyone. There are not adequate bank branches in rural areas. Apart from non-reading of fingerprints, people face regular problems of internet and power outage. If one fails to withdraw pension in one day, then half its pension would be spent in transportation,” said Mr. Bag welcoming cash payment.
