No monopoly rights for cash transfer: Finance ministry.

NEW DELHI: The government has said that it is not handing over monopoly rights to any entity for distribution of cash under the direct benefit transfer scheme.

In response to a TOI article on December 30 ("Cash transfer plan a scam in the making"), the finance ministry said it has now standardized technology to enable customers to transact with any bank through any business correspondent. Earlier, a customer was locked to a correspondent due to technological issues.

It also said ultra small branches were being set up to spread banking activities in villages and the information technology department's common service centres were also being roped to act as business correspondents.

In addition, banks are setting up ATMs in pilot districts, with nearly 5,000 ATMs planned by the month-end. Along with mobile banking though a new payment gateway, another transaction tool is being provided, the finance ministry said.

"The approach of the government is not to rely on any single mode for banking transactions but to leave the choice to the account holders among the various alternate channels," it added.


Source : timesofindia.indiatimes.com