By IANS,
New Delhi : To ensure subsidies and welfare schemes reach the intended recipients and there is no siphoning off of funds, a government-appointed committee Thursday recommended that payments be made directly to the beneficiaries.
The panel also said the beneficiaries of all social security programmes and subsidy recipients could greatly benefit if their payments are made electronically and directly into their bank accounts or post office savings accounts.
The task force on Aadhaar-enabled e-payment system headed by Unique Identity Authority of India (UIDAI) chairman Nandan Nilekani, submitted its final report to Finance Minister Pranab Mukherjee here.
The committee considered issues such as payments to beneficiaries of social welfare schemes, means to reduce subsidy burden and bring more transparency in the system to reach the benefits to the recipients.
Among the schemes that the government is implementing include the guaranteed rural employment scheme and Indira Awas Yojana for providing housing to the poor. That apart, it also provides subsidy on domestic LPG supplies, fertilisers and kerosene.
“Transacting all government business using electronic payments will help reduce graft, and bring about greater transparency and accountability,” said the report.
Further, the task force recommended that front line development workers such as school teachers, Anganwadi workers and ASHA workers, who often do not receive their salaries on time, too could benefit by the e-payment system.
To make it happen, the report recommended a network of one million interoperable micro ATMs to be set-up across the country for people to access their accounts at their own convenience.
To set-up this network in a short time, the task force suggested that a last mile transaction fee of 3.14 per cent, with a cap of Rs.20 per transaction, be paid by the government to banks for such e-payments.
“This will lead to reduction in leakages and achieving financial inclusion,” said the report.
For reducing use of cash, the task force recommended that government and government-owned institutions should accept electronic payments at all locations where they revenues from citizens, without any additional surcharge.
Further, the report suggested that over a period of time, all government payments over Rs.1,000 should be made or received electronically.
On receiving the report, Mukherjee said e-payments would ensure timely delivery of benefits, reduce transaction costs, and leaks.
Under the e-payment plan, pilot projects are being implemented at present in LPG, kerosene, fertilizers and rural job scheme, which can be further expanded, Mukhejee said.
Noting that “a strategic transformation of the governance” can be brought about through e-payments, Nilekani suggested “a systematic platform-based approach” for the purpose.
The government had set up the task force in September last year to recommend a “detailed solution architecture” for direct fund transfer in social welfare schemes to beneficiaries-held bank account attached to their Aadhaar number being generated by the UIDAI.