Tamil Nadu to seek payment banking licence, could be first state to get it

TheTamil Nadugovernment is planning to seek a payment bank licence soon from theReserve Bank of Indiato help it efficiently manage its funds and effectively monitor its disbursal, while implementing welfare measures for the needy.

Palanivel Thiaga Rajan, Nadu minister for finance and human Resources management, told reporters on Monday that the state could become the first to get such a licence. But prior to that, we have to create necessary Infrastructure and link the sub-treasuries. It will not take five years to get it. Maybe a few months from when we put up the papers,Thiaga Rajansaid.
The finance minister

had stressed on the need, while presenting the revised budget on August 13 this year, for linking the 250-odd sub-treasuries for effective monitoring of disbursal and Remittances.

In order to prevent recurrence of such instances of idle non-utilisation of funds in the future, direct disbursal of funds from the government treasury to the ultimate beneficiaries will be soon done through anIntegrated Financial andHuman Resources Management System (IFHRMS).