SBI, Railways sign MoU for doorstep banking across 585 SCR stations
16 January 2020
The State Bank of India has signed a memorandum of understanding with South Central Zone of Indian Railways for doorstep banking for direct pickup of earnings covering all 585 railway stations over SCR Zone.
The direct pick-up of cash from all the railway stations on SCR as per the MoU dispenses with the tedious and complex activity of movement of cash earnings through “Cash Safes” by trains. This will enable hassle free collection of traffic earnings by SBI and remittance into government account avoiding delay in transmission of traffic cash earnings.
BS Christopher, chief commercial manager, Freight Services and J Meghanath, financial advisor and chief accounts officer, traffic on behalf of South Central Railway and Surendra Nayak, deputy general manager, Digital and Transaction Banking Unit, SBI, Hyderabad Circle, signed the MoU.
As per the MoU, all railway stations in the SCR will have uniform cash remittance mechanism and real time information about the cash being deposited by different stations, which will help in better supervision and accountability. Besides, it will help avoid unwanted accumulation of cash at railway stations.
Speaking on the occasion, general manager, South Central Railway, Gajanan Mallya, expressed happiness with the tie-up and opined that such understandings will go a long way in streamlining financial transactions accounting.
Prior to the MoU, the earnings generated at smaller railway stations each day were being manually sent with the guard of nominated trains while in case of major stations, earnings were being remitted by the concerned commercial supervisor at the nominated nearest banks, which necessitated that security escorts from Railway Protection Force (RPF) personnel accompany the official.
This had caused delay in remittances of cash owing to various factors such as holidays, availability of man power etc. The newly introduced facility of door step banking as per the MoU will do away with the difficulties faced earlier, besides increasing the pace of financial transactions and digitization of remittance of cash earnings of the Railways.