Odisha has rightly expressed reservations with the direct benefit transfer system for pension disbursal. DBT is not without its pitfalls, and Odisha's existing distribution system is considered to be one of the finest in the country
Pension is a dignified means of sustenance for at least 44 lakh families in Odisha. If not absolute sustenance, it certainly adds to the livelihoods of as many individuals who could be senior citizens, widows or persons with disabilities. It is the State’s responsibility to ensure that the pensioner receives correct amount of pension, hassle free and honourably. We are reminded of Bollywood stories of the harassed pensioners, the hapless fathers and widowed mothers, at the hands of dealing assistants and officers and their torture. Pensioners are not recipients of charity. They have a right to the social security arrangement.
Across the country, in Kerala, there is about an estimated 32 lakh welfare pensioners. There, the State Government has adopted Direct Benefit Transfer (DBT) of welfare pensions to some 12 lakh beneficiaries, while about 18 lakh welfare pensioners continue to receive their pensions through the postal network and the remaining two lakh through money orders, with the option open to switch over to the DBT system. The decision to switch over to the DBT system in Kerala was taken following serious lapses in pension disbursement through the postal network.
At the crucial Inter-State Council meeting in New Delhi last month, Odisha expressed reservations with the DBT system of disbursal of pensions and justifiably so. The DBT system is not without its pitfalls, and we have to be cautious in the context of Odisha.
let’s not shy away from acknowledging that Odisha’s pension distribution system, including a fixed day approach for disbursal at the gram panchayat, has been lauded widely as one of the finest disbursal systems in the country. linking the panchayats with the pensioners or their households establishes a direct contact which augurs well for the percolation of social security measures to the last mile.
In Odisha, there are many rural areas and tribal areas without any banking facility and road connectivity. And the banking correspondent (BC) model would not be viable by distributing small amounts to about 44 lakh people every month. There is a looming scare of the model spurring rent-seeking behaviour, corruption and misrepresentation.
From the pensioner’s angle, a BC model in Odisha is not desirable, at least for the time being. Odisha in the past has tried doorstep banking without much success, and the pilots which were implemented have never been able to scale up.
Nevertheless, the State is operating 100 mobile vans with banking services to unbanked villages with an aim to provide banking facilities to the remote unbanked areas. A mobile van provides banking with ATM service to six gram panchayats in a week. The mobile banking vans operate in haats/market areas. About 24 mobile vans are currently providing banking facilities in the unbanked areas.
The banks which had appointed BCs to enrol beneficiaries in rural areas have had to face problems at the grassroots — of BCs opening more than one account for each beneficiary for incentives, BCs not giving pass books to beneficiaries, BCs not making the beneficiaries aware of the scheme and illiterate, hard-to-reach beneficiaries are even more vulnerable.
The Odisha Government has used information and communication technology to make social security measures efficient and better serving.
It has launched a portal to help create digital life certificates for smooth transaction of the monthly pensions. The Integrated Financial Management System (IFMS) portal under the Finance department is implementing the Digital life Certificate Initiative, named Jeevan Pramaan. IFMS will improve governance through better financial management, enhance transparency and accountability by means of information and communication technology. The Digital life Certificate (DlC) will help deliver the essential service through the Aadhar platform.
This will come under the umbrella e-governance initiatives and will be more user-friendly, because collectors, treasury officers and branch managers of authorised banks disbursing pension are working to ensure the sustainability of the DlC initiative in the interest of the pensioners of the State.
The State Government pensioners drawing pension from different Treasuries and banks are enabled to generate DlC through Aadhaar based biometric devices installed in over 165 Treasuries across the State. The pensioners are able to generate and submit DlCat their place through the Jeevan Pramaan Portal. The pensioners, the senior and infirm need not be physically present before the pension disbursing officer.
This is not about systems only; it is about people. The pensioners have the right to receive their rightful pension every month, in time and through a fool-proof delivery mechanism. For our seniors and other eligible pensioners, we need a system which works — not a branded programme which risks efficiency.