Nepal | May 30, 2020

Allowance distribution strategy issued

Himalayan News Service
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Kathmandu, May 19

The Ministry of Federal Affairs and General Administration has issued the ‘Strategy on Payment of Social Security Allowances through Electronic System, 2018’ to facilitate distribution of social security allowances in a more effective, systematic, transparent and client-friendly manner.

According to the MoFAGA, the need for broadening and automating the payment system prompted it to issue and implement the strategy as part of paradigm shift to banking channel from the cash-based system.

Elderly citizens above 70 years, Dalits and locals of Karnali zone who are above 60 years of age and children of the same region who are below five years will be entitled to the allowance.

Similarly, the allowance would be provided to single women/widows, people of endangered indigenous nationalities/ethnicity and the disabled.

Senior citizens are provided with Rs 1,000 a month and rest of the others, except disabled, Dalits and children, enjoy Rs 1,000 monthly. Disabled holding red ID cards under the complete disabled category and people of endangered indigenous nationalities/ethnicity get Rs 2,000 while blue card holder disabled persons are entitled to Rs 600. The children from Karnali region, who are below five years and Dalits, get Rs 400. The allowances are distributed through the concerned local level on a four-monthly basis.

As per the strategy, the Department of Civil Registration will select a single principal bank for across the country or each one principal bank in all seven provinces to distribute the allowances via the bank account of the beneficiaries. The principal bank so selected shall coordinate with the banks and financial institution or non-banking payment service providers available at the local levels to ensure the beneficiaries are paid through the banking channel.

“Social security special saving account shall be opened for each beneficiary. The DoCR shall allocate the fund to the local levels which will have to deposit in their account held with the principal bank for distribution of the allowances to the beneficiaries,” the strategy reads. In the case of beneficiaries who have attained the age of 90 or above and the complete disabled holding red ID card will be provided with the allowances at their door through the service providers designated by the principal bank.

The annual budget statement of the fiscal 2017-18 had stated that all types of social security allowance would be distributed by opening bank account of the beneficiaries. The beneficiaries living in the places with no banking service will get the allowance through the authorised non-banking payment service providers as per the policy of Nepal Rastra Bank.

According to MoFAGA, the details of nearly 2.25 million beneficiaries have been entered into the online system of the DoCR. Out of 753, as many as 422 local levels have already adopted the banking channel to reach the beneficiaries with the allowances. The DoCR is mandated to maintain records of personal incidents like birth, death, divorce and migration registered in the local level, and manage social security programme in the country.

A version of this article appears in print on May 20, 2018 of The Himalayan Times.

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