CHENNAI: Several beneficiaries who receive money under the Kalaignar Magalir Urimai Thittam scheme may not be able to withdraw the full amount from their bank accounts as most of these accounts are regular ones that have a minimum balance requirement and not zero-balance Jan Dhan accounts.
Of the 2.2 crore ration cardholders in TN, new bank accounts were opened for approximately 13 to 14 lakh beneficiaries over the last few months. A major chunk of these cardholders subsequently got enrolled in the honorarium scheme, sources said.
The minimum balance that needs to be maintained in these accounts opened mostly in nationalised banks, post offices, and cooperative banks varies from Rs 500 to Rs 1,000 (without chequebook facility) depending on the bank and nature of the account, sources said. “The minimum balance will be frozen by the banks and it cannot be withdrawn,” a bank official told TNIE.
‘Zero-balance accounts suit only elderly’
Bank officials told TNIE that due to the transaction restrictions in Jan Dhan accounts that offer zero-balance facilities, most of the applicants have opted for regular accounts. A branch manager said zero-balance accounts have a monthly transaction cap of Rs 10,000 and an annual transaction limit of Rs 1 lakh.
“Also, the balance cannot exceed Rs 49,000, and account holders will not be eligible for jewel loans or other loans.” Jan Dhan accounts can only be used for 24 months after which they must be upgraded into regular accounts. Such zero-balance accounts are suitable only for the elderly who solely receive credit through pensions, the bank manager said.
“Since the minimum age of beneficiaries under the ‘urimai thogai’ scheme is 21, several young women with the potential to carry out larger monetary transactions have opted for regular bank accounts. Those who have deposited the minimum balance at the time of opening the account can withdraw the Rs 1,000 immediately.”
The minimum balance for a savings account in a central cooperative bank is Rs 500 without a chequebook facility. Many banks have been experiencing delays in printing ATM cards due to the large volume of new savings accounts opened for the scheme.