The government has decided to utilize the well established post office accounts to transfer funds in the form of pensions, payments under welfare schemes and scholarships.
At present, there are about 36 million post office accounts which are utilized for the purpose of making payments for employee guarantee schemes. Reportedly, these savings accounts form 43 percent of total accounts opened for the purpose of disbursing wages under rural employment guarantee schemes.
Now, that the government is moving towards Aadhar-linked direct cash transfer mechanism for paying wages to poor and underprivileged, these post office savings accounts can also be utilized for disbursing payments.
Prior to this move, according to a notification (issued in 2008) by the department of posts, only NREGA related payments could b made through postal savings accounts. Later, the finance minster, Mr. P. Chidambaram had expressed the need to remove the August 2008 notification by the postal department.
Talking about the circular to withdraw the notification, rural development minister Mr. Jairam Ramesh said that the earlier notification defeats the idea behind direct cash transfer scheme of the government.