Centre asks states to facilitate free movement of bank agents

NEWDELHI: The Union finance ministry has asked all state governments to facilitate the movement of business correspondents (BCs) and ‘bank mitras’ amid a nationwide lockdown to contain spread of the coronavirus (Covid-19) pandemic so that the poor living in remote areas can get easy access to the monetary help announced by the Centre on Thursday.

BCs and ‘bank mitras’ are crucial service providers in areas that do not have regular bank branches. They are representatives or agents of a bank who provide services such as account opening, deposit and withdrawal.

Finance minister Nirmala Sitharaman directed department of financial services (DFS) and state-run banks to ensure effective delivery of the Rs 1.7 lakh crore Covid-19 welfare package Thursday, including direct cash transfer in accounts of beneficiaries, an official with direct knowledge said requesting anonymity. On Saturday, she appreciated services of ‘bank mitras’ and BCs across country in a tweet. “Will talk to states -- request no restrictions in their movements. Will speak to all banks to facilitate cash flow. Let’s ensure timely access to all,” she said.

On Thursday, she unveiled a Rs 1.7 lakh crore package under the Pradhan Mantri Garib Kalyan Yojana that included an additional transfer of foodgrains for three months, direct cash transfer to accounts of vulnerable sections of society and insurance support to those in the frontline of battle against Covid-19.

She said BCs and ‘bank mitras’ are taking every precaution to check spread of virus while serving customers. “Here are just two examples of Bank Mitras in Purulia, West Bengal & Beed, Maharashtra. Brave men & women like these around the country are bringing the bank to you in a safe manner—armed with a bucket, soap, sanitiser & bank kiosk kit,” she tweeted.

The package also included direct financial support to the poor. This includes payment of ex-gratia amount of Rs 1,000 to 30 million vulnerable people, such as economically poor widows, senior citizens above 60, and physically challenged. Besides, Rs 500 will be paid per month to 200 million women Jan Dhan accountholders for three months.

The government has also assured there will not be any disruption in essential banking and all ATMs will function normally.

Several banks are, however, rationalising branch operations to minimise physical interactions of their employees to protect them from the Covid-19 outbreak.

To facilitate customers in getting banking and insurance-related information, the DFS has created a new twitter handle “@DFSFightsCorona”, through which customers can route complaints and queries against banks to the government directly a finmin spokesperson said.

Late in the evening, the finance minister also spoke to chairperson and managing directors (CMDs) of public sector banks on issues related to bank branches serving customers, he said.

After hearing some problems faced by certain bank branches in Punjab due to the lockdown, Sitharaman spoke to Punjab CM Capt. Amarinder Singh. The CM has assured her to facilitate banks, he said.

BANK MITRAS OR CORRESPONDENTS PROVIDE SERVICES SUCH AS ACCOUNT OPENING AND WITHDRAWAL. THEY ARE KEY IN RURAL AREAS WHERE THERE ARE FEW REGULAR BRANCHES