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Ladki Bahin scheme: State asks banks to reverse GST, other deductions
While banks normally charge GST for services offered to customers, the state has asked financial institutions to reverse the deductions and halt further charges
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shrinivas.deshpande@hindustantimes.com
The euphoria over receiving the first stipend under the Mukhyamantri Ladki Bahin Yojana was short-lived for some beneficiaries as their bank accounts showed unexpected deductions, including Goods and Services Tax (GST) and other charges. While banks normally charge GST for services offered to customers, government officials have directed financial institutions to reverse the deductions and halt further charges.
“We have told bankers not to levy any charges under the plan,” said Sujata Saunik, Maharashtra chief secretary.
Chief minister Eknath Shinde and his deputies Devendra Fadnavis and Ajit Pawar on August 18 launched the Ladki Bahin Yojana that offers ₹1,500 per month to women aged 21 to 60 with an annual family income of less than ₹2.5 lakh. While the state government states that the plan is aimed at making women atmanirbhar (self-reliant), opposition parties term it as an election gimmick with assembly election expected to be held in October-November.
Sagar More, the son of 52-year-old Sunanda Balu More of Bhosari, received a mobile notification of ₹3,000 deposit in her bank account on August 16. However, when the beneficiary, along with her son, visited the Bank of Maharashtra to withdraw ₹1,500, she found her account showed zero balance. The account statement revealed that ₹2,454 had been deducted for minimum balance charges, ₹441.72 for GST, ₹88 for SMS charges, and ₹15.84 as GST on these charges.
Sunanda said, “If the government did not want to give us money, why did they made us fill forms after waiting in long queues.”
Jyoti More, another beneficiary, said, “My Bank of Baroda account was inactive for a year, and I was charged ₹500 for not maintaining minimum balance. The plan should be renamed ‘Lakdi Bank Yojana’ as it seemingly allows banks to clear dues using government funds.”
Shetal Nakul Vaze from Maval said, “While many neighbours received the full amount, Punjab National Bank deducted ₹2,603 from my account as ATM and minimum balance charges.”
Monika Randive, district women and child development officer, who is overseeing the distribution of money under the scheme, said a circular has been issued to banks on Wednesday instructing to stop deductions.
“Banks have also been told to activate frozen accounts allowing scheme recipients to withdraw money,” she said.
Pune District Collector Suhas Diwase also chaired a meeting with bankers on Wednesday.
“While the chief secretary has already instructed banks, we have asked their officials not to indulge in any such activities and refund deducted money,” he said.
More than 1.05 crore eligible women have already received ₹3,000 for two months in their bank accounts in the past one week while others whose application is under scrutiny will get ₹4,500 for three months in September.
Yogesh Patil, coordinator for the Ladki Bahini Yojana from Bank of Maharashtra, the lead bank for Pune district, said, “Many banks are deducting dues under minimum balance and other service charges. The 18% GST on various service charges are paid to the government. We have requested the state authorities to communicate with the Reserve Bank of India to prevent such issues in future.”
Chartered accountant Yashwant Kasar said that while banks can charge GST on services offered to customers, there should be no deduction on credited interest or payment from government.
“Women consider the money received as ‘Olavani’ (return gift) from brothers. The CM and his deputies should intervene in the matter,” said Seema Salve, former Pimpri Chinchwad Municipal Corporation standing committee chairperson.
