THIRUVANANTHAPURAM: Finance Minister K M Mani and former Finance Minister T M Thomas Isaac on Wednesday locked horns over an alleged move of the Finance Department to permit disbursement of salaries of government employees through new generation banks.Isaac sought leave for presenting an adjournment motion over the government decision to ask the employees to avail of banking services of the three private sector banks - ICICI Bank, HDFC Bank and Axis Bank.Isaac alleged that the government stand that it had permitted the government departments to use the services of only public sector banks was not true. The LDF Government had banned the disbursement of pension and salaries through banks and instructed the departments to make the disbursement only through treasuries. Treasury accounts were opened in the name of all government employees. Steps had been taken to draw salaries and pension through ATMs. He said the UDF Government’s move was aimed at closing the treasury savings bank accounts.While Isaac alleged that the government move would result in treasury losing a cash balance of Rs 5,000 crore in five years, Finance Minister K M Mani refuted the allegation. He said Isaac’s allegation against him in the Assembly, was ‘’baseless and untrue.’’It was the LDF Government which issued the Government Order (P) No. 439/12-10-2009 for disbursing the salary through public sector banks. The Police Department, Motor Vehicles Department and the High Court had switched over to banks following the GO. Later, the LDF cancelled its order on the grounds that ATM facilities were being planned at treasuries. The Reserve Bank of India (RBI), however, did not allow this. Following this, the UDF Government limited the order applicable only to public sector organisations with the GO(P) 402 dated September 23, Mani said.
Comments
0 comment