A new system of disbursing scholarships, subsidies, and other financial benefits directly to the economically weaker people would commence on January 1, according to union finance minister P Chidambaram.

"The first phase of the scheme will be implemented in 51 districts across the country.New districts would be covered in phases once in three months and all districts would be covered in another 18 months," he said.

Chidambaram said the objective was to ensure that benefits reach the targeted groups and do away with middlemen. Old age pension, scholarships, Minimum wages under Mahathma Gandhi Rural Employment Guarantee Scheme, subsidies for ration and LPG would be paid directly to the beneficiaries, he said.

The minister was speaking at a function here yesterday after declaring open the 4119th branch of Central Bank of India.

Chidambaram said government wanted to open more branches to ensure all people have bank accounts. Nationalised banks alone had opened 7,500 branches in the last two years,he said, adding banks planned to recruit 63,200 people this year.