DBT rollout: Takru meets bankers

Discusses the way forward for the ambitious scheme

A week after setting June 30 deadline to bankers to set up on-site ATMs to widen the scope of direct cash transfer scheme coverage, Banking secretary Rajiv Takru met bankers in Mumbai on Wednesday and discussed the way forward for the ambitious scheme. The government is yet to get parliamentary approval for the same.

Takru did a stock taking of the number of Aadhaar-linked bank accounts opened and debit cards issued so far. "He also asked us what more is to be done in phase I and II of the DBT (direct benefits transfer) rollout. All targets are very much in place. No particular reservations have been voiced by the ministry. There are a few issues on technical grounds which have been discussed. And probably NPCI, IBA and banks will be working together to solve those issues," Indian Overseas Bank Executive Director M Chawli told reporters.

Takru did not speak to the media after the meeting held at the headquarters of the financial giant LIC. Earlier in the day, Oil Minister Veerappa Moily announced the DBT scheme will be extended to LPG supply in 20 districts from June 1, under which the subsidy on the cooking gas will be directly transferred to the consumer's bank account.

Today's meeting follows a direction to banks from the ministry last week to install onsite ATMs by June 30. Gearing up for the second phase of the rollout of the direct benefit transfer (DBT) scheme, the government last week had asked banks to install ATMs at their branches in 121 districts by the end of June. The first phase rollout of the Direct Benefit Transfer (DBT) began on January 1, covering 43 districts. The second phase will begin on July 1 that will cover 78 more districts.

"The installation of onsite ATM in these 121 districts must be completed by June 30. It should be ensured that debit cards are issued to the beneficiaries under the scheme taken up for DBT," finance ministry said in a communication to all public sector banks.