CHENNAI: Finance Minister Thangam Thennarasu issued a stern warning to banks across the state on Sunday, cautioning them against deducting service charges and outstanding dues from funds disbursed to beneficiaries of Kalaignar Magalir Urimai Thittam. TNIE reported about the potential hassle in a story headlined ‘Minimum balance need in A/Cs may be dampener’ on September 16.
The warning follows reports of banks deducting money from beneficiaries citing various reasons. Thennarasu said the state government will formally communicate this matter to Union Finance Minister Nirmala Seetharaman, and individuals can register complaints against such action through toll-free Mudhalvarin Mugavari helpline at 1100. In a release, Thennarasu expressed disappointment over recent reports of certain banks deducting service charges and outstanding dues from the accounts of beneficiaries, which he described as regrettable.
Thennarasu highlighted that despite clear instructions being given during a recent bankers’ meeting that banks should refrain from deducting any amounts under the monthly assistance scheme, some banks have failed to adhere to the directives. This non-compliance is unacceptable, he said.
The minister also reminded banks of the existing Memorandum of Understanding between them and the state government, emphasising that funds allocated under the honorarium scheme should not be used to cover their administrative expenses.