MoU between SCR, Indian Railways, & SBI for Doorstep Banking covering 585 Stations

Speed Post News Network

New Delhi : A Memorandum of Understanding ( MoU) was signed between South Central Zone of Indian Railways and State Bank of India for Doorstep Banking for direct pickup of earnings covering all 585 Railway stations under SCR Zone.

The direct pick up of cash from all the railway stations under 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.

The MoU was signed by Dr B S 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.

Major benefits from the MoU are: All the railway stations will have uniform cash remittance mechanism; Real time information about the cash being deposited by different stations which will help in better supervision and accountability; Avoidance of unwanted accumulation of cash at railway stations; and Smart way of remittance of station earnings.

Speaking on the occasion, General Manager, South Central Railway, Gajanan Mallya, expressed his happiness over the tie-up and said 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 commercial supervisor concerned at the nominated nearest banks, which necessitated that Security escorts from Railway Protection Force (RPF) personnel accompany the official, according to a PIB release.

The existing procedure held scope for 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 digitisation of remittance of cash earnings of the Railways.