Banks must not deduct money from women's monthly aid scheme: TN Finance Minister Thangam Thennarasu

While acknowledging the unprecedented achievement of crediting over one crore women's bank accounts on the first day of the project, Minister Thennarasu emphasized the importance of ensuring that the beneficiaries receive their full entitlement without any deductions.

The Tamil Nadu Chief Minister, MK Stalin, inaugurated the Monthly Aid Scheme on September 15, marking a significant milestone in the state's history.

This visionary initiative aimed at providing financial assistance to head women of households has garnered admiration not only within Tamil Nadu but also across the nation.

Other states have applauded Tamil Nadu's commitment to women's welfare through this scheme.Tamil Naduidentified as many as 1.06 crore women (1,06,50,000) as beneficiaries under the plan and the Rs 1,000 assistance is paid to beneficiaries through Direct Benefit Transfer.

However, amidst the scheme's success, certain grievances came to the government's attention. Specifically, concerns were raised about service charges levied by banks for processing the entitlement amount credited to the women's head bank accounts.

Additionally, complaints emerged regarding some banks deducting amounts for pre-existing loans.

Finance Minister Thangam Thennarasu addressed these concerns decisively.

He stated, "In the meeting of the State Banks Group, it has been advised that the banks should not withhold the entitlement amount provided by the Tamil Nadu Government. However, it is unacceptable that this instruction is not followed in some banks."

To ensure compliance with the government's agreements, memorandum of understanding (MoUs) have been established between the state government and banks.

These agreements explicitly stipulate that banks must refrain from using the women's aid amount provided by the Tamil Nadu government for their administrative expenses.

Any banks found in violation of these agreements will face the transfer of their transactions to other banks, accompanied by further disciplinary actions.

Finance Minister Thennarasu underlined the seriousness of the matter by stating that a formal letter would be addressed to the Union Finance Minister, Nirmala Sitharaman.

The letter will emphasize that banks must refrain from deducting any amount from the women's entitlements, which are intended solely for the welfare and betterment of women beneficiaries.

This decisive stance by the Tamil Nadu government reflects its unwavering commitment to safeguard the rights and well-being of the state's women beneficiaries.

The Finance Minister's statement sends a clear message to banks that adherence to the agreed-upon terms and the protection of women's entitlements is of paramount importance. (ANI)