Shift to Cash Transfer

Content for Mains Enrichment (CME)

 Source: TH

The Odisha government has decided to shift from direct bank transfers to cash payments at the Panchayat level for its Madhu Babu Pension Yojana (MBPY) due to challenges faced by pensioners in accessing their funds and technical issues with the MBPY portal.

 

The move has been criticized by Union Minister Dharmendra Pradhan, who believes it is a step backwards in the fight against corruption. Odisha has poor banking infrastructure in rural areas, making it difficult for pensioners to withdraw their funds.

 

Usage: The example can be used to highlight the difficulties in the use of direct cash transfers for social security payments in India.