HDFC Bank has signed a Memorandum of Understanding (MoU) with the government of Jammu & Kashmir for direct transfer of payments to beneficiaries under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
According to spokesman, the initiative – the first of its kind in J&K under the central government’s Direct Benefits Transfer (DBT) programme – will result in faster transfer of payments to beneficiaries. It will also enable the government to efficiently track funds.
The MoU was signed by Mr Kuldeep Krishan Sidha, Assistant Commissioner Development, Jammu and Mr Zubair Iqbal, Vice President & Circle Head, J&K, HDFC Bank.
Speaking on the occasion, Mr Zubair Iqbal said, “The Department of Rural Development of J&K has achieved a unique distinction by becoming the first in the state to affect electronic transfer for payments under MGNREGA. At HDFC Bank, we feel privileged to be chosen as a partner for this initiative. The Bank’s strong reach in far-flung rural locations of J&K, combined with advanced technology and multichannel servicing capabilities, will ensure efficient flow of funds to the last mile. The initiative also ties in well with our financial inclusion efforts at rural locations.”
The electronic transfer of payments to job card holders is expected to benefit an estimated 78,000 families. Currently, the transfer is being done manually through cash and cheque – which consumes relatively more time.