New Delhi: In a bid to provide direct subsidy to the consumers and decrease the cash transaction burden on the economy, the government may start setting up small ATMs in panchayats across the country. Through these Micro-ATMs, subsidy on cooking gas and kerosene can be directly transferred to the consumers. Labours going outside their homes for work would be able to send back money easily by availing facilities of these Micro-ATMs. The government plans to appoint 10 Lakh banking correspondents to ensure smooth implementation of the social sector schemes.

These recommendations form a part of the report which was presented on Thursday to the Finance Minister Pranab Mukherjee by UIDAI-Chairman Nandan Nilekani in the presence of Agriculture Minister Sharad Pawar, Rural Development Minister Jairam Ramesh and Food Minister K V Thomas.

Working committee has said that at least 10,000 Micro-ATMs need to be installed across country. Micro-ATMs can be set up in every panchayat building. Moreover, it has also been suggested to the government to set up micro ATMs in all post offices pan India. By setting up this facility, subsidies will be directly transferred to the accounts of eligible candidates. It is recommended to take 3.14 percent on every cash transaction as fees upto the maximum of Rs 20.

After submitting the report, Nilekani told reporters that installation of Micro-ATMs will relax cash transaction burden to a larger extent on the government.

In a broader sense, payment of Rs 5,00,000 crore can be done through this facility. These include Rs 3,00,000 crore subsidy and Rs 1,00,000 crore sent by expatriated labourers.

The ATMs will also help in payment for Anganwadi and MNREGA.