Tamil Nadu To Apply For Bank Payment License, May Be First State To Obtain It | Chennai News

CHENNAI: The government of Tamil Nadu plans to apply for a “payment banking license” from the Reserve Bank of India in the near future to help it manage its funds effectively and monitor its disbursements effectively, while implementing protective measures social for the needy.
Tamil Nadu’s Minister of Finance and Human Resources Management Palanivel Thiaga Rajan told reporters on Monday that the state could become the first to obtain such a license. “But before that, we need to create the necessary infrastructure and connect the sub-treasuries. It won’t take five years to get it. Maybe a few months after the newspapers were published, ”said Thiaga Rajan.
The Minister of Finance stressed the need, during the presentation of the revised budget on August 13, to link the some 250 sub-treasuries for effective monitoring of disbursements and remittances.

But the main challenges include creating the required infrastructure and training staff.
Meanwhile, a special task force, established by the Ministry of Finance and headed by Reeta Harish, Special Secretary of Finance, tracked and recovered Rs 1,946.3 crore, inactive in various accounts in different departments, which may be immediately handed over to the government. Account. This is money that has been accounted for by the treasury as spent after being allocated to various programs, but not spent due to program closures or inefficient implementation at the lower level of the device. government. They actually resided in other government accounts, beyond the reach of accounting and auditing systems.
“This is just a trailer. With a lot more data for the task force to collect and collate, we plan to track and recover several times the amount of money collected so far. These will be “multiple X’s” of what was recovered. This gives me confidence that we, under the leadership of our Chief Minister (MK Stalin), would be able to deliver on all election promises much sooner than expected, ”said Palanivel Thiaga Rajan.
In order to prevent such cases of non-use of funds from recurring in the future, the direct disbursement of funds from the Public Treasury to final beneficiaries will soon be through an integrated financial resource management system and human (IFHRMS).
The state government is also working on a “data purity” project to ensure that state government allocations only reach those who deserve them. “By undertaking such initiatives, we are not reducing the disbursement of funds for ‘old age pension’ or PDS card holders, but we are only monitoring it to make it more efficient. Effective disbursement will allow us to provide help to more deserving people who need financial help. We aim to enable at least 10% more deserving people to get help in each district, ”he said.
Turning his attention to state finances, Thiaga Rajan expressed confidence that he will be able to reduce the “revenue deficit” for the first time in seven years. “It is not an easy task. We will do better and I guarantee it,” he said.
“We borrowed 10,000 crore rupees less than last year and spent 13,000 crore rupees on capital expenditures to boost economic growth. Although the indications on the income front are quite good, as of August of this year, the actual numbers indicate that the economy is still at the level of 2019-2020, ”said a senior official.


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Michael J. Birnbaum

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