Row in Kerala over pension delivery

A recent decision by the Congress-led United Democratic Front (UDF) government in Kerala to transition from doorstep delivery of welfare pensions to Direct Benefit Transfer (DBT) mode has sparked controversy. Presently, around 23 lakh social security pensioners receive their monthly payments of ₹2,000 via the DTH method, which involves primary agricultural credit societies.

With roughly 60 lakh people receiving welfare pensions, this measure holds significant political weight. The UDF's proposal, based on a recommendation by the Kerala Social Security Pension Ltd (KSSPL), aims to eliminate doorstep delivery of pensions through Aadhaar-linked bank transfers. The primary concerns cited include delays in payments, incorrect payments, and multiple payments to the same individual, as well as the financial burden of incentives paid to delivery agents.

The Left Democratic Front (LDF), led by Pinarayi Vijayan, has vehemently opposed the decision, arguing that it would cause hardship to senior citizens with limited access to banks. The LDF accuses the Congress-led government of potentially weakening and eventually phasing out pensions. The LDF also refutes the government's claim that Kerala might lose central financial assistance, stating that the 8.4 lakh welfare pensioners eligible for central shares were already receiving it through DBT.

The Comptroller and Auditor General of India (CAG) had previously raised concerns about inefficiencies in the doorstep delivery system in 2023, recommending more beneficiaries be transitioned to DBT to curb malpractice and fraud. Finance Department data shows that Kerala had spent ₹434.89 crore over eight fiscal years on incentives for physical delivery of pensions.

While DBT is recognized for eliminating intermediaries and preventing fraud, Kerala's robust cooperative sector, comprising strong grassroots connections, suggests a more viable solution may lie in leveraging local networks for senior citizen welfare.