haryana’s tryst with e-payments

Haryana is one of the first states in India to move towards e-payments of welfare programmes. Early last year, it began stopped disbursing its social sector pensions through sarpanches, and began using banks and banking correspondents instead. However, after six or so months, the state government called off the project and went back to the old approach. Given that the rest of the country is also moving towards e-payments, what does Haryana’s experience have to tell us? Is the new channel better at rooting out corruption? Is it more cost-effective at delivery than the erstwhile model?

ET emailed some of these questions to Ashok Khemka, the Director of the state’s Department for Social Justice and Empowerment. Read the interview here. You might also want to see this related story on the economics of the bank-BC model.