How to make cash transfers work
- Elections 2014 LIVE: Narendra Modi slams Jayanti Natarajan; polling underway in 12 states
- Admiral Dhowan appointed as new Navy chief
- âWonât be vindictive... will ask Supreme Court to clear MP, MLA cases in a yearâ
- Alagiri backs âgreat manâ Modi as PM
- Elections 2014 Phase 5: The five big battles
A final point is one we have learned in our Indian pilot cash transfer schemes, which relates to the challenge of financial inclusion. Sceptics say it will not work because only 35 per cent of Indians have bank accounts. True. But we have found that experience of cash transfers soon leads people to open bank accounts or their equivalent.
We recommend that initially, cash transfers are provided in hand, at designated venues, such as the local school. The recipients should be told that within three months they should set up bank or cooperative accounts. Those who do so could be given a one-off incentive of, say, Rs 200. The remainder should receive the cash in hand for a further three months, within which they must have accounts. The local panchayat and voluntary or paid groups should help people set up accounts.
In sum, the success of cash transfers will depend as much on how it is done as on the cash itself.
The writer is professor of development studies at the School of Oriental and African Studies, University of London, and professor of economic security, University of Bath, UK. He is also co-president of BIEN, a global network promoting basic income cash transfers
- Activist, her aide booked for cheating in attempt to frame acquitted murder accused
- Extended Monorail running hours fails to pull crowd
- HC orders action against Essel World for causing harm to mangroves
- Cops crack bar girl’s murder case after waiter’s tip-off
- Railway to provide plastic pouches for commuter IDs
- Last safety check for Metro to begin April 18