Prime Minister Dr.Manmohan Singh will take a meeting of the cash transfer committee on Monday on implementing the direct cash subsidy scheme through the Aadhaar based system. Stating this in Pune today, Finance Minister P. Chidambaram said the Government will launch the scheme on the New Year Day and the meeting is being held in the run up to the event. He said initially the scheme will become operational in 51 districts. The entire country is proposed to be covered by the end of 2013.

Addressing the Indian Bankers Associations conference, BANCON-2012 in Pune today, he said the scheme will, among other things, facilitate the pay out of direct cash subsidies to the targeted beneficiaries. Admitting that the economy is in a slowdown mode, he said the economic growth is expected to be 5.5 per cent in the second quarter. Our efforts are to achieve the growth over 8 per cent, he said.

Expressing confidence of passing the Banking Regulation Act as early as possible, he said he had asked the Reserve Bank to finalise the guidelines for new licences and start accepting applications pending the passing of the Bill. He said , the RBI had allowed new private banks to operate last time in 2002 and earler new players came in 1991-92. By the end of this fiscal year, the refund of tax payers for 2011-12 will be done, he said.