By Our Reporter
SHILLONG: The State Government on Wednesday signed a Memorandum of Understanding (MoU) with Axis bank and Meghalaya Co-operative Apex bank for providing business correspondent services to the beneficiaries of the MGNREGA scheme.
The Axis bank would render its services in East Khasi Hills, Jaintia Hills and West Garo Hills district while the Meghalaya Co-operative Apex bank would cater to Ri Bhoi district.
Speaking to media persons after signing the MoU, President of Business Banking, Axis bank, Subramanian MV said, “The Government and the two banks will soon start the process of identifying the beneficiaries and we will be issuing electronic benefit transfer card to the beneficiaries.”
Under the MoU, the beneficiaries of the MGNREGA scheme would have to open an account and the banking facilities would be provided through the business correspondent model.
According to bank officials, the business correspondents would act as delivery agents for each and every house hold.
The move is expected to ensure transparency as 98 per cent of the wages under the scheme in the State is distributed through cash and this move will create a better and efficient delivery system for the disbursal of wages.
It is learnt that the out of 6126 villages in the State 4544 villages are unbanked as no branch is available within a radius of five kilometers.
Last year the State Government had signed a similar MoU with the State Bank of India for providing banking facilities through Business Correspondent model.