Note ban hits welfare schemes beneficiaries

Hyderabad: Beneficiaries under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and the Aasra scheme are among those hit hard by the recent demonetisation of Rs 1,000 and Rs 500 notes, with senior officials of the State Panchayat Raj and Rural Department running after powers that be in the postal department and nationalised banks for supply of smaller denomination notes.

According to officials, the State government has released Rs 395 crore for the month of October. The funds are meant for disbursal of pensions under the Aasra scheme as well as payments to the beneficiaries of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). However, due to the sudden demonetisation, the department was not able to make payments immediately.

Explaining the dismal situation, State Panchayat Raj and Rural Development Commissioner Neetu Kumari Prasad told Minister for Panchayat Raj Jupalli Krishna Rao that only Rs 2,000 notes were being disbursed by banks, resulting in problems.

For instance, the pension amount under the Asra scheme is Rs 1,000. The denominations in which the department got money from the banks had impeded disbursements, she pointed out.