Serious differences have cropped up between public sector banks and Punjab government over the model to be adopted for implementing EBT for social security schemes with later insisting upon 'one district one bank model' while former showing reservation over its success.
Nationalised banks under the banner of State Level Bankers' Committee (SLBC) today requested Punjab government to have a relook at model for implementing EBT by suggesting it to allot the distribution of social security benefits job to several banks rather than giving to only one bank.
However, Punjab government, which has already implemented 'one district one bank' model for EBT, said this model has been successful in distributing pension with no complaints.
"The issue is here that bankers wanted that every bank should serve its area in one district for distributing pension to beneficiaries. (But) we do not want it to be (implemented) in bits and pieces. Suppose if there are 10 banks in one district and I want all them to be on board and if nine banks (out of 10) are on board, this scheme fails," Punjab Social Security, Women and Child Development, Director, Gurkirat Kirpal Singh said during State Level Bankers Committee meet here today.
Singh said it is convenient for the department to interact with one bank for implementing EBT scheme in stead of 10 or 12 banks in a district.
Electronic Benefit Transfer (EBT) enables state government to implement social security scheme in an electronic manner whereby banking correspondents hired by banks distribute social security money like pension to beneficiaries at their doorsteps.
On the other hand, public sector banks insisted that involving more banks in implementing EBT for social security schemes would provide wider network to cover and would also be cost effective for banks.
"They (Punjab government) do not want to interact with too many people (banks). But we feel that all banks together would have wider network rather than one bank (as it) will have limited network to cover (beneficiaries in a particular area)," PNB, Executive Director, Rakesh Sethi who is also Chairman of SLBC (Punjab & Haryana) said here.
Punjab Food and Civil Supplies minister Adaish Partap Singh who was present in the SLBC meeting asked bankers to first start distributing pension on pilot basis in villages before raising scale of operations.
