After being rolled out with much fanfare in November last year, the West Bengal government-backed small savings scheme to keep ponzi firms in check is now struggling without key personnel and software for maintaining accounts.

The West Bengal Infrastructure Finance Development Corporation (WBIDFC), which is managing the scheme, has now decided to go slow on the initiative.

In the last four months, the WBIDFC was able to raise only R2.5 crore under this scheme, although it could collect up to R1,140 crore in deposits in the first year, which is 1.5 times of its net-owned capital of R760 crore. Till now, the subscriber base of the small savings scheme across the state is only 2,300.

?We are currently going slow on expansion of the scheme. We urgently need key personnel and a software for maintaining accounts. Proper software is a necessity for the security of public money,? WBIDFC chairman Abhirup Sarkar told FE.

Sarkar said he was ?afraid? of expanding the subscriber base of the scheme without proper software.

He said the WBIDFC recently got expression of interests from different IT vendors for the necessary software, but it will have to wait for a few months to recruit new people as the model code of conduct is on for the upcoming general elections.

?After our recruitment advertising, thousands of people had applied. But the Election Commission told us that we can interview them but cannot make any fresh recruitment until the poll is over,? Sarkar said. Apart from IT and recruitment-related issues, the state government is also facing difficulties to rope in major banks as partners for the scheme.

WBIDFC had earlier urged the State Bank of India (SBI), Allahabad Bank, UCO Bank and United Bank of India to be its bankers for deposits but it had to go ahead with only United Bank. While Allahabad Bank and UCO Bank stayed out due to lack of clarity, SBI?s participation still remains in a limbo as it feels that R25 per transaction for their service is substantially less than the cost for operating the savings accounts.

WBIDFC sources said SBI was asking for higher transaction fees. When contacted, SBI chief general manager (Bengal Circle) Sunil Srivastava refused to comment on that, saying, ?The matter is under consideration.?

Under this scheme, the state government is offering its depositors a 9% interest rate, higher rate than the National Savings Certificates issued by post offices.