This article is from Aug 14, 2021

Is it announced in the budget that “Tamil Nadu Bank” will be commenced ?

The Finance Minister Palanivel Thyagarajan presented the revised budget for 2021 in the Tamil Nadu assembly yesterday. It is viral now on social media claiming it as an important aspect of the budget about commencing a bank for Tamil Nadu.

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It is being claimed on social media that instead of giving loans to big businessmen this aspect of “Tamil Nadu Bank” would let the money of Tamil Nadu people be used by themselves.

What is the Truth?

In the 40th page of Tamil Nadu revised budget, “As the next phase of the integrated financial and human resource management plan, treasuries will be expanded with pre-audit facilities and will be converted into payment bank of government and local bodies”, is mentioned.

When Tamil Nadu Finance Secretary Krishnan speaks about it he said, “There is nothing as TamilNadu bank. This is a long-term visionary plan. We have many treasuries and sub-treasuries. We intend to have a sub-treasury for each Taluka. If we keep funds in a bank or any organisation, the government’s fund will stagnate in the bank which could not be used for the state.

It is not good to have the funds that we pay as interest for the loans received get stagnated in the bank. When we seek ways to hold the funds in government account without letting them out, we got to know about the ‘payments bank’ option introduced by the Reserve Bank. Now we are in a plan to convert the treasuries and sub-treasuries into payments bank option”.

Hence, it is announced that the government treasuries will be expanded and converted into payment banks of government and local bodies. The government is in a plan to bring in something similar to Paytm payments bank.

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