All 5,630 Karnataka Gram Panchyats to have Bank Branches/ATMs. Is Cash@POS a better option?


Out of the 5,630 Gram Panchayats in Karnataka, Bank Branches/ATMs are yet  to make an entry in 2000 GPs.

What would be the best option?

01) Bank Branches

02) Bank owned ATMs’

03)White Label ATMs’


The NREGA (Mahatma Gandhi National Rural Employment Guarantee Act) wages are disbursed through EBT (Electronic Bank Transfer) to the beneficiaries accounts.  In 2012–13, the RDPR deposited nearly Rs. 1,600 crore in banks for payment of wages to MNREGA beneficiaries. But business correspondents disbursed only Rs. 70 lakh to beneficiaries residing in unbanked villages.

In the first six months of the current fiscal year, the RDPR spent Rs. 850 crore and deposited Rs. 500 crore in banks for payment of wages to beneficiaries.

The beneficiaries approximately had to spend a full day to visit the nearest bank/atm to withdraw their wages from the bank accounts. The operation of branchless banking model by various banks through the appointment of business correspondents in villages has delayed payment of wages in unbanked villages.

Due to the poor performance of business correspondents, delay in the payment of wages by banks, and also to reduce travelling time and expenses, the RDPR has asked to conduct mapping of all GPs to set up ATMs.

A total of 1,52,110 households are working under the job scheme as on November 3, 2013. A total of 9,841 households completed 100 days of work. For payment of MNREGA wages, banks have been implementing the Electronic Benefit Transfer (EBT) scheme in seven districts — Bellary, Gulbarga, Chitradurga, Yadgir, Chamarajanagar, Dharwad, and Mandya. A total of 4,29,767 accounts were opened in these districts.

EBT is a smart card-based project for payment of MNREGA wages and other social security benefits. The State government paid the cost of Rs. 95 per card. The EBT system can eliminate bogus claimants and help the exchequer save money.

The State government has been paying transaction fee to the banks implementing the EBT scheme.

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