BoP to charge fee on flood compensation
Government announced it will pay Rs25,000 to each family in areas where flood has inundated 40 per cent or more land
LAHORE:
Bank of the Punjab (BoP) will deduct service charges for the distribution of Rs15 billion among flood-victims, The Express Tribune has learnt.
The bank will receive Rs262.5 million by providing the service in 16 calamity-hit districts. The provincial government owns 51 per cent of BoP shares.
A Finance Department official said the bank had originally proposed to deduct 3.5 per cent of the amount.
“It later agreed to 1.75 percent deduction,” said the official who did not want to be named.
At least 280 people were killed and 11,685 square kilometres was inundated in recent rains and floods. The government has announced that it will pay Rs25,000 to each of the family in areas where flood has inundated 40 per cent or more land. Rs15 billion has been allocated for the purpose.
The BoP started disbursing the aid on October 1. It will complete the process by October 25.
The official said the government had released Rs10 billion to the bank on September 25.
He said the Finance Department had objected to the service charge but later released the amount on chief minister’s directive.
BoP President Naeemuddin said the bank was charging 1.75 per cent service charges. It would earn Rs262.5 million, he said.
“We are a commercial bank.”
He said the BoP had hired four service providers, including mobile-phone service providers and a financial institution, to operate 170 centres to distribute the aid.
Published in The Express Tribune, October 4th, 2014.
Bank of the Punjab (BoP) will deduct service charges for the distribution of Rs15 billion among flood-victims, The Express Tribune has learnt.
The bank will receive Rs262.5 million by providing the service in 16 calamity-hit districts. The provincial government owns 51 per cent of BoP shares.
A Finance Department official said the bank had originally proposed to deduct 3.5 per cent of the amount.
“It later agreed to 1.75 percent deduction,” said the official who did not want to be named.
At least 280 people were killed and 11,685 square kilometres was inundated in recent rains and floods. The government has announced that it will pay Rs25,000 to each of the family in areas where flood has inundated 40 per cent or more land. Rs15 billion has been allocated for the purpose.
The BoP started disbursing the aid on October 1. It will complete the process by October 25.
The official said the government had released Rs10 billion to the bank on September 25.
He said the Finance Department had objected to the service charge but later released the amount on chief minister’s directive.
BoP President Naeemuddin said the bank was charging 1.75 per cent service charges. It would earn Rs262.5 million, he said.
“We are a commercial bank.”
He said the BoP had hired four service providers, including mobile-phone service providers and a financial institution, to operate 170 centres to distribute the aid.
Published in The Express Tribune, October 4th, 2014.