September 11, 2015 – Global IME Bank Limited, a Sakchyam partner institution, has been selected to distribute G2P payments (Government to Public) which will include social security allowances for the elderly, physically disabled and widowed members of 12 wards of Parshuram Municipality in Dadeldhura District. The payments will be made the bank’s Jogbudha extension counter. The extension counter was set up as a part of a partnership between Sakchyam and GIBL to expand access to finance in the region.
Previously, beneficiaries would often either not get allowances or receive them late in the absence of the Village Development Committee (VDC) Secretary. They also have to be physically present or the amount would be withheld. With the new intervention, the allowances will be deposited into personal bank accounts of each beneficiary, which can be withdrawntheir convenience. The beneficiarywill also be able earn interest on the amount. For Jogbudha’s locals, this takes away the cumbersome act of traveling long distances to receive allowances, and returning with the cash with the risk of getting robbed.
As a result of Sakchyam and GIBL taking up the issue, and after numerous deliberations, an agreement was signed on September 6, 2015, between the District Development Committee of Dadeldhura, Parshuram Municipality and Global IME Bank to open accounts for the purposes of distributing social security payments to a total of 3100 beneficiaries. The government has committed to increase the social security allowance for the same from NPR 500 to NPR 1000 per month from this Fiscal Year. These allowance will be provided to the beneficiaries every four months by the District Development Committee.The first payments will be handed out starting from Ashwin 2072/mid-September 2015.
Sakchyam’s initiatives toward expanding access to finance are funded by UK aid. The programme is implemented for DFID Nepal by Louis Berger in partnership with several local and international partner institutions.