✎ Pension split risks hardship for 2.11 lakh elderly; rights groups demand full doorstep payouts.
Relevance for Banking, SSC & RBI Grade B exams: Economy
Rights groups have raised concerns over the Andhra Pradesh government’s proposal to split social security pension payouts for the elderly, with a portion being transferred directly to bank accounts while the rest is delivered at doorstep. The United Forum for RTI Campaign and the Human Rights Forum argue that this split, which affects over 9.34 lakh beneficiaries, could create financial hardship, especially for those in remote tribal and rural areas with limited banking access. For banking exam aspirants, this highlights the challenges in financial inclusion and the need for efficient direct benefit transfer (DBT) systems, while for SSC candidates, it underscores socio-economic policies affecting vulnerable sections. RBI Grade B aspirants should note how such policy shifts impact fiscal federalism and social welfare expenditures.
The proposed split, where pensioners aged 80 and above receive ₹500 via DBT while others get a mix of cash and digital transfers, risks confusion and additional costs for beneficiaries. Activists cite a study showing that tribal pensioners in Paderu spend over ₹200 per trip to access bank funds, raising concerns over the Centre’s ₹332 crore annual contribution being routed through SNA-SPARSH. This issue is relevant for banking exams as it reflects the interplay between government welfare schemes and banking infrastructure, while for SSC and RBI Grade B exams, it ties into broader themes of poverty alleviation, fiscal policy, and the role of digital payments in governance.
Source: The Hindu
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