Jayalalithaa praises role of banks

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The state government plans to disburse social security pensions through banks to ensure hassle-free and leakage-proof delivery.

Welcoming the participation of banks in the crucial payment mechanism, chief minister J. Jayalalithaa said, “The government would like to ensure that all social security pensions are disbursed through banks. The process has begun but needs to expand rapidly to cover all recipients.”

Speaking at a function marking the special platinum celebrations of the Indian Overseas Bank, she also sought disbursement of wages under the Mahatma Gandhi national rural employment guarantee Act to be done entirely through the banking system. “The high volume of pension, wage and scholarship payments in TN represents huge business opportunity for banks,” she added.

Highlighting the proposed launch of the integrated financial and human resources management system, the chief minister sought the cooperation of banks to implement fully automated government receipt and payment systems. She also urged the banks to help in the smooth implementation of TN urban livelihood mission for poverty reduction apart from ensuring flow of credit to the farm sector.

The chief minister also sought the support of banks in channelising private sector funds for the Rs15 lakh crore Vision 2023 document along with help for the proposed entrepreneur development scheme, NEEDS. “The banks should not only support the students with liberal education loans but also proactively come forward to finance start-ups when they finish education,” she said.

Pointing out that the state ranks seventh in the country’s financial inclusion index, Ms Jayalalithaa sought setting up a banking connection in every village in the state. “I exhort all the bankers to redouble their efforts to raise TN to the number one ranking in the financial domain,” she said.