3 weeks ago
RJD criticises Kerala UDF move to stop cooperative bank pensions
In Kerala, a state in India, the government changed how pension money is given to people who need it.
Earlier, cooperative banks brought the pension straight to people's homes.
Now the government wants the money sent directly into people's bank accounts, a system called Direct Benefit Transfer.
The government says the old system caused problems like delays, mistakes, and sometimes paying the same person twice.
It also worried about losing money from the central government by not following new rules.
A leader named Varghese George thinks the new plan is a bad idea.
He says many pensioners do not have bank accounts linked to Aadhaar, so they may not get their money.
He also says banks may take fees from the pension, and about 5,000 workers who delivered pensions door-to-door could lose their jobs.
The government says bedridden people who cannot visit banks will still get their pensions at home.
Both sides say they want to help pensioners, but they disagree about the best way to do it.
RJD State Secretary General Varghese George called the Kerala government's decision to stop pension disbursement through cooperative banks 'impractical.'
The UDF government made Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts mandatory for all social security pension beneficiaries except bedridden patients.
Around 62 lakh people receive social security and welfare pensions through cooperative banks, but George claimed less than one-third have Aadhaar-linked commercial bank accounts.
The government cited payment delays, reconciliation issues, duplicate payments, and possible loss of central financial assistance as reasons for the switch to DBT.
George warned the move could hit about 5,000 doorstep delivery field staff earning Rs 4,000-5,000 a month and hinted at further political steps if the old system is not restored.
- Who
- Varghese George, RJD State Secretary General, criticising the UDF government of Kerala
- What
- Kerala's decision to replace cooperative bank pension delivery with Aadhaar-linked Direct Benefit Transfer
- Where
- Kerala, India; remarks made in Pathanamthitta
- When
- August 9 (Sunday)
- Why
- The government cited delays, duplicate payments and DBT compliance concerns; RJD called the move impractical and harmful to beneficiaries
RJD and LDF's criticism
UDF government's DBT decision
Pension disbursement method
RJD and LDF's criticism
The cooperative bank doorstep delivery system was working effectively; switching to commercial banks is impractical because most beneficiaries lack Aadhaar-linked accounts.
UDF government's DBT decision
DBT through Aadhaar-linked accounts is needed to comply with central norms, avoid losing central financial assistance, and fix delays, reconciliation issues and duplicate payments.
Impact on beneficiaries' income
RJD and LDF's criticism
Commercial banks will deduct minimum balance amounts, so pensioners will not receive their full pension; Jan Dhan accounts have been frozen due to lack of transactions.
UDF government's DBT decision
DBT ensures pensions reach beneficiaries directly through verified accounts, and bedridden beneficiaries will still receive pensions at home.
Effect on doorstep delivery workers and promises
RJD and LDF's criticism
About 5,000 field staff earning Rs 4,000-5,000 a month will lose their livelihood, and the UDF has not announced its promised Rs 3,000 pension increase.
UDF government's DBT decision
Continuing the old system meant incentive payments to cooperative banks and risked losing central financial assistance for not fully complying with DBT norms.
Key facts
- Pension beneficiaries affected
- Around 62 lakh people
- New disbursement system
- Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts
- Exemption
- Bedridden beneficiaries continue receiving pensions at home
- Government rationale
- Delays, reconciliation issues, duplicate payments, risk of losing central financial assistance
- RJD position
- Move is 'impractical'; previous cooperative bank system was effective
- Field staff affected
- About 5,000 workers earning Rs 4,000-5,000 per month
- Interest paid to cooperative banks
- 9 percent on pension principal
- UDF manifesto promise
- Pension enhancement to Rs 3,000 (not yet announced)
Quotes
RJD State Secretary General Varghese George
Leader of the Labor Democratic Front (LDF) party bringing criticism of the UDF government
“It would be highly impractical to disburse pensions through the commercial banks and to ask people to open accounts in commercial banks before Onam to get the pension amounts.”
theprint.in
“So, the beneficiaries will not receive the pension amount in full. The previous system was better as it was functioning effectively.”
theprint.in






