KATHMANDU, FEBRUARY 10
The number of local levels distributing social security allowance through banking channel has reached 654 as of mid-January.
According to the half-yearly report card released by the Ministry of Home Affairs, there was an increment of around 25 per cent in the number of local levels that integrated distribution of social security allowance into the banking system.
The Ministry of Federal Affairs and General Administration has issued a circular to all the local levels, directing them to distribute social security allowance to beneficiaries only through banking channel. There are 753 local levels in the country.
Earlier, the federal government had made the provision of banking system mandatory for distribution of allowance by publishing a notice in the Nepal Gazette in line with Section 17 of the Social Security Act, 2018. The Section reads, "The payment of social security allowance shall be made only through the banking system."
The provision came into effect after reports of misuse of funds, theft, robbery and loss of social security amount due to cash distribution system in some local levels. In addition, various audit reports had also pointed out irregularities committed by employees of local governments as social security allowance was not distributed through the banking channel.
However, the allowance will be distributed in cash in those local levels that have no access to banks and financial institutions yet. The local levels provide social security allowance to the listed beneficiaries on the basis of identity cards. The prevailing law requires the local units to review and update the records of identity cards so as to maintain transparency of the budget allowance by the government.
Senior citizens above 60 years (Dalit), single women, senior citizens above 70 years and senior citizens above 60 years of specified areas can benefit from security allowance of Rs 2,690, Rs 2,690, Rs 4,000 and Rs 2,690 per month respectively. Differently-abled persons bearing red card and blue card get Rs 3,900 and Rs 2,690 accordingly.
According to the MoHA, more than 3.45 million people were listed as beneficiaries of the social security allowance as of fiscal 2020-21. The government has allocated a budget of Rs 100 billion for this fiscal.
A version of this article appears in the print on February 11, 2022, of The Himalayan Times.
