Row over Kerala govt restricting doorstep pension delivery; Opposition slams UDF

The Kerala government's decision to exclude cooperative banks from distributing social security pensions has triggered strong opposition and criticism, leaving pension beneficiaries deeply disappointed, particularly those who rely on doorstep delivery to access their monthly payments.

Under the new government order, social security pensions will henceforth be routed through banks, with payments to be made through commercial banks. Direct distribution will be retained only for bedridden beneficiaries and those considered unavoidable exceptions. It was the former LDF government's decision to disburse the pensions at beneficiaries’ doorsteps using the cooperative banking network across the state.

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The current government has cited concerns over the recording of repayment details by some cooperative societies and the expenditure incurred as incentives for the societies. The decision, it said, was taken after examining a letter from Kerala Social Security Pension Limited.

UDF faces backlash

The move has immediately become politically contentious, with the Opposition accusing the ruling UDF government of dismantling a system that had enabled elderly and vulnerable beneficiaries to receive pensions without having to visit a bank.

Former Chief Minister and Leader of the Opposition Pinarayi Vijayan described the move as an attempt to undermine a social security pension distribution system that had become a model for the country. He said the new order would particularly hurt beneficiaries who remain outside the formal banking network and have health and mobility difficulties.

"Along with technical justifications, the UDF government is also seeking to justify the move by arguing that the state could lose financial assistance from the Centre if its directives on Direct Benefit Transfer (DBT) are not followed.

State bears burden

The Centre’s contribution accounts for barely one per cent of the total social security pension amount distributed in Kerala every month. Moreover, this central share is available to only 13.5 per cent of the total pension beneficiaries. The state government bears the entire pension amount for the remaining 86 per cent.

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“It was precisely for this reason that the LDF government had continued with its pension distribution system while rejecting the Centre’s diktats on the manner in which pensions should be distributed," said Vijayan in his statement.

Concerns over facilities

But beyond the political argument, the government's decision has raised a more immediate question among pensioners: how someone who cannot access bank facilities could get the pension.

For many elderly beneficiaries, the doorstep delivery system through cooperative societies has meant more than convenience. It has allowed them to receive the pension without travelling to a town, or operating an ATM or other banking facility.

For 81-year-old Valliyamma, a former agricultural labourer from Nedumangad taluk, the proposed change feels like a betrayal.

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“I used to get the pension when the bank clerk, who is also my neighbour, brought it to me. I am not healthy enough to go to the town. If this government stops that, how could people like me survive? I am not bedridden and that is what the bank manager told my son today,” she said.

Elderly seek clarity

Valliyamma does not have a bank account and depends on the existing system to receive her pension. For her, the distinction between being bedridden and being physically incapable of making a trip to a bank is difficult to understand. “I cannot walk to the bank and stand in a queue. I don't know how to operate these machines. What am I supposed to do?” she asks.

Her concern reflects that of a broader group of beneficiaries who may not meet the government's definition of a bedridden person but are nevertheless elderly, financially vulnerable, or unfamiliar with formal banking systems.

Antony Silvester, another pensioner from Vizhinjam in Thiruvananthapuram, shared a similar concern. For him, the issue has little to do with which political party is in power.

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“Governments will change. Congress and the Marxists will come to power. But this kind of help to the poor should not be withdrawn. I have poor eyesight. How am I expected to go to the machines and collect the pension?” he asked.

"If the Congress thinks their opponents are exploiting the system, let them catch the wrong-doers; it's not fair to burden us, elders," he added.

Govt defends move

The Opposition has seized on precisely this concern, arguing that the government's decision could turn a social security entitlement into a bureaucratic exercise that places the burden of accessing the pension on the beneficiaries themselves.

The government, however, maintains that the move is aimed at streamlining the distribution mechanism and bringing it in line with the banking and DBT system. The order says several cooperative societies have failed to properly record repayment details and also points to the expenditure involved in paying incentives to cooperative societies.

The government has also argued that beneficiaries who genuinely cannot access banking facilities will continue to receive direct delivery. But the definition of who qualifies for such an exception could become crucial.

For pensioners such as Valliyamma and Silvester, the problem is that vulnerability does not always come in the form of being confined to a bed. Poor eyesight, limited mobility, lack of a bank account, unfamiliarity with ATMs and the inability to travel to a town can make accessing a bank almost as difficult.