Naveen Patnaik govt. urged not to make cash payment under social security schemes

After incidences of elderly persons facing problems of withdrawing their pension from banks as biometric devices failed to read blurred fingerprints, the Naveen Patnaik Government had on May 20 announced that all beneficiaries under Madhu Babu Pension Yojana would be receiving cash on 15 of every month at disbursement places as before.

Days after the Odisha government reverted to system of physical distribution of cash under social security schemes, Union Education Minister Dharmendra Pradhan on Wednesday said cash payments, historically, have had tendencies to spur corruption, pilferage, and exploitation of beneficiaries by middlemen.

After incidences of elderly persons facing problems of withdrawing their pension from banks as biometric devices failed to read blurred fingerprints, the Naveen Patnaik Government had on May 20 announced that all beneficiaries under Madhu Babu Pension Yojana would be receiving cash on 15 of every month at disbursement places as before.

“Older and disable pensioners, who cannot move to disbursement places, will receive pension at their doorsteps,” said Department of Social Security and Empowerment of Persons with Disabilities. The direction was, however, silent on inclusion of central government components in cash distribution. The cash payment is scheduled to start from the month of June.

Currently, beneficiaries receive their pensions through Direct Benefit Transfer (DBT) mode with assistance getting automatically deposited directly in their respective bank accounts.

In a letter addressed to Chief Minister Mr. Patnaik, Mr. Pradhan said he was worried over Odisha government deciding to make cash payment under social security schemes while discarding DBT strategy.

“This decision, unfortunately, appears to be a step backwards in our collective pursuit of corruption-free governance and efficient public service delivery. Across India, a whopping 48.99 Crore bank accounts have been opened under this scheme, amassing savings of 1.97 lakh crore. In Odisha itself, 201 crore bank accounts have been activated, saving Rs 8,751 Crore for the people of our State,” he said.

“Moreover, 1,45,48,473 Rupay cards have been issued in Odisha for ease of transactions Prime Minister Narendra Modi’s social security schemes such as the PM Jeevan Jyoti Yojana, PM Suraksha Bima Yojana, PM Matru Vandana Yojana, and Old Age,” Union Minister pointed out.