New Delhi, Nov 26 (IANS) Four public sector banks - State Bank of India, Punjab National Bank, Union Bank of India, and Indian Bank - Thursday signed an agreement with the human resource development ministry to push the implementation of the government’s new Rs.60 billion National Literacy Mission.
The agreement aims at transparency, delivery and online monitoring of “just-in-time fund flow and proper utilisation of the Sakshar Bharat (Literate India) fund”.

“We have learnt from our past experience and wanted to bring in transparency in the new mission. Coming together with banks will help us ensure a hassle free flow of funds to the implementing agencies up to the gram panchayats,” Minister of State for Human Resource Development D. Purandeswari said.

A new mission to make 70 million adults - most of them women - of 365 underdeveloped districts literate was launched by Prime Minister Manmohan Singh in September. The human resource development ministry aims to spend Rs.60 billion on this.

Monetary expenditure plans from 167 districts of 19 states have already been received by the ministry. National Literacy Mission Authority (NLMA) chief J.S. Raju said government will use the core banking system of these banks.

The unique feature of the proposed fund flow mechanism envisages a single bank account for each state, empowering the districts, blocks and gram panchayats to issue cheques and monitor spending.

“Money laundering and corruption will be curbed. A transparent system like this will help achieve success in this mega plan on literacy,” Ajay Mishra, general manager of Punjab National Bank, told IANS.

The four banks would provide customized cheque books to all the implementing agencies of the mission and assure them of cash flow for a certain period of time.