A recent audit report from the Municipal Corporation of Delhi (MCD) reveals that 48.74% of students in MCD schools were denied financial benefits from 2016-17 to the 2022-2023 session due to the non-opening of bank accounts necessary for fund disbursement, according to a report from PTI.
The audit, conducted by the MCD's Office of Chief Auditor, disclosed that the Education Department failed to provide financial benefits under government schemes to approximately 3,83,203 students.
MCD adopted a Direct Benefit Transfer (DBT)
The MCD, in 2016-17, adopted a Direct Benefit Transfer (DBT) system to transfer benefits directly to students' bank accounts, aiming to streamline fund distribution and prevent malpractice. However, the audit found that, as of November 2023, the 100% target for making Aadhar cards mandatory for opening bank accounts had not been achieved.
Of the total 7,86,205 students in MCD schools, only 4,03,003 had bank accounts by November 2023. The report noted that 1,36,599 students, despite having Aadhar cards, did not have bank accounts.
The lack of a proper mechanism and inconsistency in monitoring/reconciling the database of account holders with enrolled students led to students being deprived of financial assistance under various schemes, violating the Right to Education Act 2009.
No clarity from MCD on target achievement
The audit report recommended that the MCD initiate the process of opening bank accounts for the financial year 2023-2024 by April, setting a deadline of June 30. It also urged the corporation to issue guidelines for schools to open bank accounts at the headquarters level and suggested signing MOUs with banks to facilitate the process. However, there is no clarity from the MCD on whether the set targets have been achieved.
With input from agencies
