Saturday, January 17, 2015

Gas Subsidy Money to be directly deposited in consumers account : Is it a Good Strategy?

Banking Sector is highly expected to reach rapid growth in near future in India because of the recent steps taken by ruling Government in Central.

Gas Cylinder Subsidy

One of the important strategy, taken by the government is sending the Gas subsidy directly into the consumers bank account.
Currently the government pays half the amount of gas cylinder consumed by the people and it has been paid to the gas agencies. Reports have been claimed that malpractices are in this methodology. So, the government has decided to make sure this amount should completely reach the people and this can only be done by transferring directly to their bank account.

Now, Government hitting two mangoes by throwing a single stone.
Yes, At the end , Each family would have one bank account and other hand the gas subsidy would be fully reach the common people.

Benefits of having a separate Bank account :

  • When we think about majority of common people, they just earn and spend it their earning fully. They are not even saving a single penny for their future.
  • Though some people are saving some money through some local persons who handle money by giving interests in their locality. This is very risky as there is no surity for their money to get back.

  • But, if they get a bank account, they can save some money when they wish to do so. This will result in mutual benefits for government and common people.
  • Government will get some money to invest in its plans. Common people will get some money as savings with interests.

Things to Concentrate in Future:

  1. Rapid increase of consumers would definitely increase the rush in the banks. So , the government banks should learn to implement online banking features for already well structured private banks like ICICI, HDFC etc.
  2. Mobile banking can be given more importance so that people may pay their phone bills, EB bills, recharges, etc through phone itself 

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