An aged woman counts her pension amount after withdrawing cash at the treasury office in Thiruvananthapuram. PTI/FileThiruvananthapuram: The state government has announced that salaries and pensions of government employees will be disbursed through treasury accounts from June 1 onwards.
A directive to this effect has been issued to the Treasury Department by the Finance Department.
With the new payment system coming into effect, about 5.5 lakhs of pensioners and government employees each will henceforth be able to collect their monthly salaries and pensions from treasuries and sub-treasuries.
At present, about 4.5 lakhs of pensioners receive the monthly pay through their Pension Treasury Savings Bank (PTSB) accounts. However, out of the 5.5 lakh government employees, only about 40,000 collect their salaries from treasuries, with the remaining staff drawing their salary through their bank accounts.
According to officials, as many as 6,60,000 pensioners and employees in the state would be brought under the new system, which was originally planned to implement in last January, but was delayed due to various administrative reasons.
The scheme would not be implemented forcefully, but the plan is to encourage more people to take the treasury route, said finance minister Thomas Isaac.
“To attract more people, the government has decided to hike the interests for PTSB deposits by 5 percent than the rates offered by various banks. A publicity campaign would be undertaken in coordination with employees and pensioners to explain the benefits of the new system,” the minister said.
Treasury accounts for all
As part of the reforms, each government employee and pensioner will have to open a PTSB account. Pensioners can approach the treasuries in their locality to create accounts in their names.
The order directing government employees to open PTSB accounts will be issued by respective departments soon.
Money can be transferred
Under the new system, government employees and pensioners will be able to transfer their salaries and pensions from the treasury account to their bank account. The treasury will make the necessary arrangements upon request. The payments for those who opt to receive their salary or pensions through banks will be first credited to their treasury savings account before being transferred to the bank account. Moreover, there would not be any restriction on the withdrawal from treasury accounts, officials said.
Mobile application and internet banking
No service charges will be levied on fees and taxes paid to government departments through treasury accounts. Internet banking and mobile application facilities will be offered to PSTB account holders. Also, there will not be penalties for non-maintenance of minimum balance. The new system is being introduced with an objective to attract more people to the treasury system by doing away with the charges levied by banks in different forms, added the officials.
