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South Central Railways & SBI sign MoU for cash management

South Central Railways (SCR) and SBI have signed an MoU for providing doorstep banking at 585 stations of the SCR zone
New Delhi: A memorandum of understanding (MoU) has been signed between the South Central Zone of Indian Railways and the State Bank of India (SBI) for doorstep banking which involves direct pickup of earnings, covering all 585 railway stations over SCR zone. The direct pick up of cash from all railway stations on SCR dispenses with the tedious and complex activity of movement of cash earnings through “Cash Safes” by trains. This will enable a hassle-free collection of traffic earnings by SBI and remittance into the government account, avoiding delay in transmission of traffic cash earnings, said a press release from the Ministry of Railways. The MoU has been signed by Dr BS Christopher, Chief Commercial Manager, Freight Services, and J Meghanath, Financial Advisor & Chief Accounts Officer (Traffic), on the behalf of South Central Railway, and Surendra Nayak, Deputy General Manager, Digital & Transaction Banking Unit of SBI Hyderabad circle, on behalf of SBI. Speaking on the occasion, South Central Railway's General Manager Gajanan Mallya expressed happiness with the tie-up and opined that such understandings will go a long way in streamlining financial transactions accounting.

What does the MoU cover?

As per the above MoU, all the railway stations will have a uniform cash remittance mechanism. The real-time information about the cash being deposited by different stations which will help in better supervision and accountability. The newly introduced facility of doorstep banking 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.

Backdrop

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 concerned commercial supervisor at the nominated nearest banks, which necessitated that security escorts from Railway Protection Force (RPF) personnel accompany the official. The existing procedure held scope for delay in remittances of cash owing to various factors such as holidays, availability of manpower etc.