Sunday, May 20, 2012

Backward Regions Grand Fund



The on-line transfer and tracking of funds is currently being implemented in the Backward Regions Grand Fund Scheme administered by the Ministry of Panchayati Raj for  efficient and simple financial management system The Guidelines of the Scheme, inter-alia, specify that all funds will be transferred to the Consolidated Funds of State Governments. Those funds that are to be transferred to Panchayats and Municipalities by the State Governments will be transferred to their bank accounts, following the same stipulations as prescribed for the devolution of 12th Finance Commission Grants, namely, within 15 days of the release of funds to the Consolidated Fund.
At the State level, the funds will be directly deposited into the bank accounts of the Panchayat or Municipality concerned, as directed by the Task Force of the Ministry of Panchayat Raj to study the feasibility of super transfer of funds  through banks to Panchayats. using the mechanism of bank transfers suggested by the Task Force of the Ministry of Panchayati Raj to study the feasibility of rapid transfer of funds through banks to Panchayats. If the State Governments fail to transfer amount has to pay a penal interest @ equal to RBI bank rate.

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