Telangana Grameena Bank is recalling COVID-19 ex gratia amount totalling over ₹17.05 crore it had credited into more than 3.41 lakh erstwhile no frills accounts that were not eligible for the same.
The regional rural bank found that 7,506 customers had withdrawn the ₹500 relief sum from their accounts before it could be recalled.
“We realised that we have accorded credit to 3,41,019 accounts amounting to ₹17,05,09,500 that are ineligible and recalled ₹500 each from these accounts on April 10,” a statement from the SBI sponsored bank said on Wednesday.
These are Basic Savings Bank Deposit (BSBD) or no frills bank accounts that existed prior to the August 2014 launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. Subsequently, they were converted into Jan Dhan accounts.
“Meanwhile, 7,506 customers have already withdrawn the amount resulting in an over draft (OD) of ₹26.52 lakh in our book, which we are confident of recovery as these are operative accounts,” Telangana Grameena Bank said. Many of the accounts get the Direct Benefit Transfer of LPG subsidy.
According to sources, the BSBD accounts were not eligible to receive the ₹500 per month COVID-19 relief announced for women Jan Dhan account holders under the Pradhan Mantri Garib Kalyan Yojana. The ex gratia of ₹500 each is to be paid for three months, beginning this month.
The release said as on March 25 Telangana Grameena Bank had 8,56,279 women PMJDY/BSBD accounts. Of these, 5,15,260 were opened under PMJDY, while the remaining 3,41,019 were BSBD accounts that were opened prior to August 1, 2014 or before the launch of Jan Dhan scheme.
“We have presumed that BSBD accounts opened prior to August 1, 2014 are also eligible under PMGKY. We received amount for 5,15,260 women PMJDY accounts from our sponsor bank [SBI] after we credited 8,56,279 women PMJDY/BSBD accounts on April 2,” Telangana Grameena Bank said. Besides SBI, the Centre and Telangana government are shareholders in the bank.