Karnataka has agreed to support the pilot that will ensure a timely and seamless payment under social security pension scheme and the NREGS. An MoU was signed by the finance secretary of Karnataka with the lead banks implementing the project, here last week, according to George Joseph, Executive Director, Syndicate Bank.
Speaking at the recently-held state level bankers' committee (SLBC), in Bangalore, he said the project will be implemented by Canara Bank, Syndicate Bank and State Bank of India, the lead banks in the proposed districts.
Devaki Muthukrishnan, regional director, RBI, said, the move to route the NREGS and social security pension payments made by the state government in the state through smart cards linked to bank accounts by engaging the services of business correspondents at the village level was pursued by the regional office of Reserve Bank of India.
A sub-committee formed for the purpose has drawn up a roadmap for implementing the project and submitted a project report to the state government.
A technology group under the aegis of state level bankers' committee was formed to evaluate the smart card-based solutions and finalise the technology provider and the project details, she said.
Further, a group of banks comprising Syndicate Bank, Canara Bank, State Bank of Mysore, State Bank of India, Vijaya Bank, Corporation Bank, Karnataka Bank and ING Vysya Bank, at the initiative of the RBI, have come together for setting up the Control Registry Mechanism for creation of database on loans against mortgage of non-agricultural property in select cities.
The database will be created for Belgaum, Bangalore, Mysore and Hubli-Dharwad, to begin with, Joseph said.
Canara Bank has also taken the lead in developing a software and format of database for implementing the project. An MoU in this regard was signed recently.
The banking sector in Karnataka has successfully implemented the first phase of financial inclusion programme in the state by opening no frills accounts. In all, 2.7 million no frills accounts have been opened under financial inclusion programme and extended general purpose credit card to 49,244 persons.
