The government is set to distribute social security allowances through banking system in three more districts from the current fiscal year.
The Ministry of Federal Affairs and Local Development and Citizens Bank International signed an agreement to this effect today.
“We will distribute social security funds through the banking system in three more districts by the end of March,” said Reshmi Raj Pandey, joint-secretary at the ministry. “The service will be provided through branchless banking system being launched for the first time in coordination with Citizens Bank International,” he added.
The ministry will distribute funds through the Citizens’ Bank in Banke, Surkhet and Baglung districts, said Shankar Nepal, under-secretary at the ministry. “A total of 68,000 beneficiaries in the three districts will receive funds through the branchless banking system.”
The ministry is already distributing social security allowances through the state-run Rastriya Banijya Bank, Nepal Bank and Agricultural Bank in the district headquarters and all municipalities.
But it has no reliable record of beneficiaries across the country.
Apart from footing preliminary costs of management, the government will provide 0.5 per cent of service charge to the bank. A total of Rs 166.1 million will be required this fiscal to distribute funds to 68,000 beneficiaries in the three districts. Rajan Singh Bhandary, chief executive officer of CIB, said they will distribute funds through smart card and banking account system. “A local agent with POS machine will be set up for 800 beneficiaries at the local level.” The government distributes security allowances every year in three quarters. VDC secretaries and local body authorities are frequently accused of siphoning off the funds by preparing fake reports, not updating data even after the death of beneficiaries and failing to pay the beneficiaries regularly.
“In order to curb such irregularities in the local bodies, we will distribute security allowances to all local bodies gradually,” ministry officials said. “It will take a few years to meet the target.”
The government started distributing social security allowances to senior citizens and widows 19 years ago. The beneficiaries and their age limit was gradually expanded, including for widows, single women, senior citizens, Dalit children and disabled people. Each beneficiary gets Rs 500 as social security allowance per month. Rs 11.31 billion is annually distributed to a total of 2,166,156 people across the country, according to the ministry.
source:the himalayan times,28 jan 2014
LINK
The Ministry of Federal Affairs and Local Development and Citizens Bank International signed an agreement to this effect today.
“We will distribute social security funds through the banking system in three more districts by the end of March,” said Reshmi Raj Pandey, joint-secretary at the ministry. “The service will be provided through branchless banking system being launched for the first time in coordination with Citizens Bank International,” he added.
The ministry will distribute funds through the Citizens’ Bank in Banke, Surkhet and Baglung districts, said Shankar Nepal, under-secretary at the ministry. “A total of 68,000 beneficiaries in the three districts will receive funds through the branchless banking system.”
The ministry is already distributing social security allowances through the state-run Rastriya Banijya Bank, Nepal Bank and Agricultural Bank in the district headquarters and all municipalities.
But it has no reliable record of beneficiaries across the country.
Apart from footing preliminary costs of management, the government will provide 0.5 per cent of service charge to the bank. A total of Rs 166.1 million will be required this fiscal to distribute funds to 68,000 beneficiaries in the three districts. Rajan Singh Bhandary, chief executive officer of CIB, said they will distribute funds through smart card and banking account system. “A local agent with POS machine will be set up for 800 beneficiaries at the local level.” The government distributes security allowances every year in three quarters. VDC secretaries and local body authorities are frequently accused of siphoning off the funds by preparing fake reports, not updating data even after the death of beneficiaries and failing to pay the beneficiaries regularly.
“In order to curb such irregularities in the local bodies, we will distribute security allowances to all local bodies gradually,” ministry officials said. “It will take a few years to meet the target.”
The government started distributing social security allowances to senior citizens and widows 19 years ago. The beneficiaries and their age limit was gradually expanded, including for widows, single women, senior citizens, Dalit children and disabled people. Each beneficiary gets Rs 500 as social security allowance per month. Rs 11.31 billion is annually distributed to a total of 2,166,156 people across the country, according to the ministry.
source:the himalayan times,28 jan 2014
LINK
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