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Coronavirus update: Centre asks states to facilitate free movement of bank agents
Finance minister Nirmala Sitharaman has directed the department of financial services (DFS) and state-run banks to ensure effective delivery of the Rs 1.7 lakh crore novel coronavirus (Covid-19) welfare package on Thursday
The Union finance ministry has asked all state governments to facilitate the movement of business correspondents (BCs) and ‘bank mitras’ amid a nationwide lockdown to contain spread of the coronavirus (Covid-19) pandemic so that the poor living in remote areas can get easy access to the monetary help announced by the Centre on Thursday.
BCs and ‘bank mitras’ are crucial service providers in areas that do not have regular bank branches, the official said. BCs and ‘bank mitras’ are representatives or agents of a bank who, provide banking services such as account opening, cash deposit, and cash withdrawal.
Finance minister Nirmala Sitharaman has directed the department of financial services (DFS) and state-run banks to ensure effective delivery of the Rs 1.7 lakh crore novel coronavirus (Covid-19) welfare package on Thursday, including direct cash transfer in the bank accounts of the beneficiaries, an official with direct knowledge of the matter said requesting anonymity.
On Saturday monring, Sitharaman appreciated services rendered by ‘bank mitras’ and BCs across the country in a tweet. “Will talk to states -- request no restrictions in their movements. Will speak to all banks to facilitate cash flow. Let’s ensure timely access to all,” she said in a series of tweets.
On Thursday, Sitharaman unveiled a Rs 1.7 lakh crore package under the Pradhan Mantri Garib Kalyan Yojana that included an additional transfer of foodgrains for the next three months, direct cash transfer to accounts of vulnerable sections of the society and insurance support to those in the frontline of the battle against the Covid-19 pandemic.
Sitharaman said BCs and ‘bank mitras’, serving unbankable areas, are taking every precaution to check the spread of the virus while serving customers. “Here are just two examples of Bank Mitras in Purulia, West Bengal & Beed, Maharashtra. Brave men & women like these around the country are bringing the bank to you in a safe manner—armed with a bucket, soap, sanitiser & bank kiosk kit,” she tweeted.
The package announced on Thursday also included direct financial support to the poor hit hard by the pandemic. The financial support includes payment of an ex-gratia amount of Rs 1,000 to 30 million vulnerable people, such as economically poor widows, senior citizens above the age of 60, and the physically challenged. Besides, Rs 500 will be paid per month to 200 million women Jan Dhan accountholders for the next three months. ‘Bank mitras’ and BCs of banks largely provide services to such people.
The government has also assured citizens that there will not be any disruption in essential banking services at branches and all automated teller machines (ATMs) will function normally. Several banks are, however, rationalising branch operations to minimise physical interactions of their employees to protect them from the Covid-19 outbreak.
To facilitate customers in getting banking and insurance-related information, the department of financial services (DFS) has created a new twitter handle “@DFSFightsCorona”. Customers can route complaints and queries against banks to the government directly through this handle, a finance ministry spokesperson said.
Late in the evening, the finance minister also spoke to chairperson and managing directors (CMDs) of public sector banks on issues related to bank branches serving customers, he said.
After hearing some problems faced by certain bank branches in Punjab due to the lockdown, Sitharaman spoke to Punjab chief minister Capt. Amarinder Singh. The chief minister has assured her to facilitate banks, he said.
