3 weeks ago

RJD criticises Kerala UDF move to stop cooperative bank pensions

RJD criticises Kerala UDF move to stop cooperative bank pensions
RJD criticises UDF govt’s move not to disburse pensions through cooperative banks · theprint.in

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.

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

Sources

Related news