Money & Banking

Telangana Grameena Bank recalls Rs 17 cr Garib Kalyan cash credit

G Naga Sridhar Hyderabad | Updated on April 29, 2020 Published on April 29, 2020

File photo   -  K_V_S_GIRI

In an unusual move, Telangana Grameena Bank (TGB) has recalled about Rs 17 crore cash credit from over 3 lakh Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.

The amount was credited to these accounts as part of the Covid19 relief package under Pradhan Mantri Garib Kalyan Yojana.

The regional rural bank sponsored by SBI has 8,56,279 women PMJDY /BSBD accounts. Of which, 5,15,260 accounts opened under PMJDY after the launch of the scheme and 3,41,019 were before launch of the scheme under Basic Savings and Bank Deposit (BSBD) accounts.

What led to the fiasco was confusion on the part of the bank about applicability of the scheme. ``We have presumed that BSBD accounts opened prior to launch of Jan Dhan Scheme were also eligible under Garib Kalyan Yojana,'' TGB said in a statement.

It credited Rs 500 to all 8,56,279 women PMJDY and BSBD accounts on April 2. But it received amount for only Jan Dhan accounts from SBI. Then it realised that it had accorded credit to 3,41,019 accounts opened prior to August 1, 2014 who were ineligible for benefits.

When contacted, V Arvind, Chairman, TGB said: ``We immediately recalled Rs 500 from each of these accounts. Meanwhile 7,506 customers have already withdrawn the amount resulting in an over draft of Rs 26.52 lakh in our books, which we are confident of recovery as these are operative accounts.’’


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Published on April 29, 2020
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