Direct bank transfer of cosmetic charges to students sparks feasibility concerns in Telangana

The Telangana government’s move to transfer cosmetic charges directly into students’ bank accounts is drawing criticism, as most students lack accounts. Practical issues like remote banks, document requirements, and delayed school rents further complicate the policy’s execution

Hyderabad: Sometimes, government decisions perfectly reflect the old adage, putting the cart before the horse. A classic case is the Telangana government’s recent announcement to deposit cosmetic charges directly into the bank accounts of students in government-run residential schools. The scheme, which aims to benefit over 1.30 lakh students in about 130 residential institutions, is facing criticism over its practicality.

The most pressing concern is that how many students actually have bank accounts? Even if a few do, accessing funds is not easy as banks are often located far from their residential schools. Moreover, to open an account, most banks require the presence of a parent or guardian, both at the time of account creation and during withdrawals. Given these hurdles, many observers are calling the initiative premature and a case of policy being rolled out without groundwork.

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BC Welfare Minister Ponnam Prabhakar announced the decision during a video conference with officials on Thursday and that process of collecting students’ bank details was already underway. However, according to officials, most of the students do not have bank accounts. And many banks are reluctant to open accounts for minors. In some cases, banks permit the opening of children’s savings accounts, but only with a parent or guardian as the account holder or authorized signatory, and with conditions like maintaining a minimum balance.

Additional complications include the need for documents like age proof and Aadhaar details. Also, many villages do not have banks which would force the students to travel long distances to withdraw money.

Currently, the government transfers funds to schools and principals distribute the cosmetic charges to students directly. Depending on the students’ age and gender, the cosmetics charges are paid to students in four different categories. For third to seventh standard girls, Rs.175 is paid per student monthly. For eighth to tenth standard and over 11 years of age, Rs.275 is paid monthly. Similarly, for third to seventh standard boys, Rs.150 is paid per student monthly (including hair cut). For eighth to tenth standard and over 11 years of age, Rs. 200 is paid (including hair cut).

There are as many as 320 government run residential institutions with over 1.30 lakh students.

It’s also worth noting that many residential schools operate out of rented buildings, and there have been several instances where landlords locked schools due to delayed rent payments. While the Minister claimed that four months’ arrears had been cleared, a few building owners in Hyderabad reportedly locked school gates on Wednesday.