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 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. Government payouts towards pensions, scholarships and subsidies worth thousands of crores of rupees will be directly transferred to bank accounts of beneficiaries in 51 districts spread over 15 states from the New Year Day. Addressing the Indian Bankers Associations conference, BANCON-2012 , he said initially the scheme will become operational in 51 districts. The entire country is proposed to be covered by the end of 2013. Aadhaar- UIDAI, a 12-digit number serving as a proof of identity and address anywhere in the country has already been issued 21 crore people. The scheme based on Aadhar aims at checking pilferage.
Chidambaram said that there is only five weeks left now to roll out the scheme. He said the Prime Minister Manmohan Singh has called a meeting on Monday to discuss issues related to direct cash transfer of subsidy. He said once the roll-out begins, the Government wants it to be completed in 600 odd districts in India. Larger number of districts will be added every quarter.
He said, the government's major subsidy bill, which include payments towards food, fertiliser and petroleum, in the current fiscal was pegged at 1.8 lakh crore rupees.
On growth, he said India's economic growth has declined to about 5.5 per cent in the first quarter of 2012-13. He said, to overcome the difficult economic situation, there is a need to find innovative ways to increase output of goods and services. Calling upon the banks to play an active role in reviving the economy, he said finding new business models will inevitably lead to some consolidation. India must create at least 2 or 3 world size banks as China has done it.
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.
