Bihar decides against making deposits in 21 banks

23 August, 2012

MPLAD and MLA funds are deposited in banks and lie there for months together as the implementation of various developmental projects takes at least six months to be finalised and implemented. The banks utilise this period in investing in festival loans to mint money, thereby hitting the state economy very badly.

GOVERNMENT FUNDS along with MPLAD and MLA funds are deposited in various banks. Generally it takes six months' time to implement the projects. During this time the amount remains with the bank without any interest accruals.

The banks on the other hand utilise this period in investing in festival loans as well as investing in short term gains, thereby mint money. Later like good boys return the money to the respective schemes.
No questions are asked so they escape. To keep employees cool, wage hike is announced and chapters are closed. Time and again articles have been written in newspapers about these but our intelligent politicians has no time to arrest this practice. Thanks to Bihar Government for discussing this subject.

Bihar deputy chief minister, Sushil Kumar Modi informed that the state government had decided against making deposits in these 21 banks till further orders and to withdraw its funds from these banks. This, he said was done after assessing the performance of various banks, who even failed to lend loan to borrowers.

Started in 1993, the Member of Parliament Local Area Development (MPLAD) Scheme makes every member of both the Houses eligible to receive Rs 5 crore every year to take up developmental works in his constituency.