As a part of its effort to streamline delivery of welfare schemes and ensure more efficient use of its funds, Tamil Nadu Government is planning to seek a payments bank licence from Reserve Bank of India.
This was revealed by Palanivel Thiaga Rajan, State Finance Minister, said on Monday. The quantum of welfare payments is huge and if the State has its own bank, it can have better control over it.
“Why should some other bank make money with our float?” a senior official explained later. The challenge is setting up the infrastructure. The government already has 250 odd sub-treasuries across the State and rest of the infrastructure can be built and people trained, the official added. It expects to apply and get the licence in a few months’ time.