Bhubaneswar, (The Telegraph) The much-publicised Atal Pension scheme that intends to provide social security to those working in the unorganised sector has failed to generate good response in the state as banks are yet to extend required support to it.

To encourage the scheme, each bank has been advised to open at least 10 Atal Pension Yojana accounts this month. Besides banks have been asked to organise Atal Carnival at the end of the month.

Sources in the government revealed that the banks had so far been able to enrol only one lakh people for the pension scheme. This is much less compared to the count in Bihar, Bengal and Andhra Pradesh. In Bihar, 2.27 lakh people have been enrolled, while in Bengal the number of Atal Pension beneficiaries is 1.17 lakh. Similarly, in Andhra Pradesh 1.89 lakh people have been covered under the pension scheme.

The Pension Fund Regulatory and Development Authority (PFRDA) administers the guaranteed pension scheme, which Prime Minister Narendra Modi had launched on June 1 last year. Under the scheme, if a person at the age of 18 deposits Rs 210 under the scheme he or she will get a monthly pension of Rs 5,000 on attaining the age of 60 years. The maximum age limit to enter the scheme is 40.

Bank officials argue that lack of awareness among the general public is the main reason for the lack of response to the scheme. Chief manager, State Level Bankers Committee (SLBC), Narasingha Swain said: "We have asked the officials to lay emphasis on creating mass awareness about the benefits of the scheme."

An official of the SLBC also argued that as the people were more interested in short-terms gains, they were not coming forward to invest in the scheme.

"However, if the people come forward, they will get long-term benefit from the scheme. Their future will also be remained secured," he said.

On the other hand, state government officials say that the non-availability of commercial and nationalised banks at the gram panchayats level has adversely hit the scheme. If the Centre wants to give more thrust to the scheme, it should ask the banks to open more branches in the rural pockets, said an official of the state government.

"We have asked the commercial and nationalised banks to open branches in gram panchayat areas that lack banking facilities. The state government has already emphasised at the state-level bankers' committee that there was need to open bank branches in the uncovered gram panchayat areas in the backward districts such as Malkangiri, Nuapada, Nabarangpur and Koraput," an official said.

Sources revealed that though the state government had assured the banks to bear the cost of V-Sat connectivity and provide office space at the gram panchayat level for setting up financial institutions, they have so far shown little interest in setting up their branches. Official data show that there are 4,765 bank branches in the state, out of which only 2,604 are in the rural and semi-urban areas.

Bank officials are of the view that it is not possible to open branches in remote areas even though the state government is pushing them to do so.

"The government should first provide infrastructure such as power and Internet connection in rural pockets," said a senior bank official.

He also argued that other than providing money to people under the MNREGA, the banks in rural areas hardly had any scope for business.

"We have found that branches in the rural areas will not be viable," they said.

Photo credit: The Telegraph