Govt to hike DBT commission for banks to 2%: Report
16/09/2014 07:49
In a step towards increasing the compensation of banks against expenses, the government has decided to raise the commission to banks for managing Direct Benefit Transfers (DBTs) to two per cent from the one per cent being paid now, as per media report. A two per cent commission makes sense and an order to that effect will be issued soon, Anurag Jain, joint secretary in the Union ministry of finance, told a banking summit organised by Ficci-IBA by a video conference from Delhi. The DBT money includes subsidy for cooking gas, kerosene and wages paid under the Mahatma Gandhi National Rural Employment Guarantee Scheme. Also, accounts opened under the Jan-Dhan Yojana will be used to make payments under DBT. The Indian Banks' Association had sought a three per cent commission to cover the expenses. The cost incurred was estimated at a little over 3.1 per cent per transaction.
16/09/2014 07:49
In a step towards increasing the compensation of banks against expenses, the government has decided to raise the commission to banks for managing Direct Benefit Transfers (DBTs) to two per cent from the one per cent being paid now, as per media report. A two per cent commission makes sense and an order to that effect will be issued soon, Anurag Jain, joint secretary in the Union ministry of finance, told a banking summit organised by Ficci-IBA by a video conference from Delhi. The DBT money includes subsidy for cooking gas, kerosene and wages paid under the Mahatma Gandhi National Rural Employment Guarantee Scheme. Also, accounts opened under the Jan-Dhan Yojana will be used to make payments under DBT. The Indian Banks' Association had sought a three per cent commission to cover the expenses. The cost incurred was estimated at a little over 3.1 per cent per transaction.
