Date:01/12/2008 URL: http://www.thehindu.com/2008/12/01/stories/2008120154300400.htm

Andhra Pradesh - Hyderabad

Krishna district all set to become ‘smart’

Payment of welfare schemes through smart cards from January 1

More than 1/3rd villages already covered
YSR distributes smart cards to few beneficiaries

HYDERABAD: Come January 1, Krishna district will become the first district in the country to pay the benefits of government schemes including pensions and NREGA wages through smart cards using bio-metric technology.

More than one-third villages of the district have already been covered under the project and the government formally launched payment of pensions and NREGA wages to their bank accounts and the amounts can be withdrawn by genuine beneficiaries as and when they like. Chief Minister Y.S. Rajasekhara Reddy formally distributed smart cards to some of the beneficiaries at a meeting convened here on Sunday.

The project, implemented on a pilot basis after the Reserve Bank of India introduced the concept of total financial inclusion, will be extended to other parts of Krishna district in the next four weeks and four lakh pension beneficiaries and NREGA wage seekers would receive payments from more than 1,000 delivery points.

12 districts

Work has been launched for introducing the project in 12 other districts – Warangal, Karimnagar, Mahabubnagar, Medak, East and West Godavari, Vizianagaram, Chittoor, Kadapa, Visakhapatnam, Prakasam and Ranga Reddy – in a phased manner.

In all, 10 public and private sector banks have been roped in to implement the project and they have commenced work on establishing the infrastructure required for making payments through the smart cards. “The smart cards will help in inculcating financial discipline and avoid pilferage,” Dr. Reddy said.

He wanted the other banks to expedite their work for establishing necessary infrastructure on the line of Axis Bank which completed the process in Krishna district.