Facilitate movement of ‘bank mitras’: Govt tells states amid Covid-19 lockdown

Coronavirus Update: Union finance minister Nirmala Sitharaman appreciated services rendered by “bank mitras” and business correspondents across the country in a tweet on Saturday morning.

The Union finance ministry has asked all states to facilitate the movement of business correspondents and “bank mitras” as they can help the poor living in remote areas of the country to withdraw money from their accounts after the government announced a Rs 1.7 lakh crore welfare package in the wake of the coronavirus disease (Covid-19) outbreak.

The government has assured citizens that there will not be any disruption in essential banking services at branches and all automated teller machines (ATMs) will function normally. (ANI File / Photo used for representational purpose only)

Finance minister Nirmala Sitharaman has directed the department of financial services (DFS) and state-run banks to ensure effective delivery of all measures announced on Thursday, including direct cash transfer in the bank accounts of the beneficiaries, an official with direct knowledge of the matter said requesting anonymity.

Business correspondents and “bank mitras” are crucial service providers in areas that do not have regular bank branches, said the official quoted above. They are representatives or agents of a bank who, provide banking services such as account opening, cash deposit, and cash withdrawal.

On Saturday morning, Sitharaman appreciated services rendered by “bank mitras” and business correspondents 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 the tweet.

The government announced direct financial support under the PM Kisan and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) programmes. It also decided to pay an ex-gratia amount of Rs 1,000 to 30 million vulnerable sections of the society 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 account holders for the next three months. “Bank mitras” and business correspondents 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 the physical interactions of their employees to protect them from the Covid-19 outbreak.