Old age pension will also to be paid via banks
The ministry of rural development is working out the modalities of payment of pension under the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) in consultation with finance and communication ministries which would benefit around 1.6 crore aged persons in the country.
“We have asked the states to implement the new pension scheme in a manner that all eligible persons are covered and that the pension is credited into a post office or bank account of the beneficiary as has been done for payment of wages under NREGA,” Rita Sharma, Secretary, ministry of rural development told FE .
The government had re-launched IGNOAPS in November last year, which covers all the people who are above 65 years living below poverty. The scope of the new IGNOAPS had been widened to cover almost 1.6 crore old BPL people from the earlier level of 87 lakh. The extension of the scheme is estimated to cost the Centre about Rs 4,300 crore in the current year.
The scheme was expanded following an announcement made by Prime Minister Manmohan Singh in his Independence Day speech last year. The scheme in its earlier form, National Old Age Pension Scheme launched in 1995, covered old destitute people. Sharma said that the rural development