The Direct Cash Transfer

Scheme “Aapka paisa

aapke haath"
 INTRODUCTION
Direct Benefit cashTransfer or DBT is an anti-poverty program
launched by Government of India on 1 January 2013. This program
aims to transfer subsidies directly to the people living below poverty
Line.

"Aapka paisa aapke haath" concept has brought happiness to

the poor who have received the benefits directly into their
bank accoounts.

The Prime Minister has set up three-tier architecture for

monitoring the scheme. This includes a national ministerial
committee, a national executive committee and
implementation committees.
 The Direct Cash Transfer Scheme “Aapka paisa aapke
haath"

About the Scheme

• Direct cash transfer scheme aims to reduce

leakages, cut down corruption, eliminate
middlemen, target beneficiaries better and speed
up transfer of benefits to eligible individuals.

• To meet the socio-developmental objectives of

poverty elimination and to inclusive growth, a
number of Government sponsored programs and
schemes have been introduced.

• However, efficiency and effectiveness have not

been achieved by any of the programs and
schemes optimally.
PROGRAMS PART OF DBT

The Direct Cash Transfer Scheme

“Aapka paisa aapke haath"

 National Child Labour Project

 Student Scholarship
 LPG subsidy
 Pension plans
 NREGA
 PRIMARY AIMS
 To bring transparency and terminate pilferage

 In DBT, benefit or subsidy will be directly transferred to the citizens living below
poverty line.

 No subsidy will be given to those people who don't require it.

 The DBT scheme aims at cutting a subsidy bill of ₹1,64,000 crores apart from other
benefits like better delivery, accurate targeting, broader choice, reducing delays and
corruption.

 LPG and kerosene subsidies, pension payments, scholarships and employment

guarantee scheme payments as well as benefits under other government welfare
programmes will be made directly to beneficiaries.
HOW DOES IT WORK?
The money is directly transferred into bank
accounts of beneficiaries having Aadhar cards.

LPG and kerosene subsidies, pension

payments, scholarships and employment
guarantee scheme payments as well as benefits
under other government welfare programmes
will be made directly to beneficiaries.

Under the DBT each and every beneficiary has

to establish his identity and eligibility many
times by producing multiple documents for
verification. The verification of such
documents is done by multiple authorities.
 What is Aadhaar?

Aadhaar card, consisting a12 digit number

issued for every individual, including infants.
Each individual of a family will have separate
Aadhaar UID number. While enrollment it
verifies all the documents pertaining to an
individual and collects biometric information -
photograph, ten fingerprints and iris through
scanning. The Unique
Identification Authority of India
(UIDAI) will issue for all residents
in India (on a voluntary basis).
 UID and its applications
Government benefits

Government can transfer the benefit amount directly to the bank

account of the beneficiaries to which their Aadhaar card is linked. In
this way we can avoid

middlemen eating away the government fund.

For the rural people if the bank branches are not there in their village
we can provide them the micro ATM facility where he need to verify
his identity by making a thumb impression on the microATM.
Then the person carrying the micro ATM will pay the benefit amount
and the bank will deduct this amount from the beneficiary’s account.
 LIQUIFD PETROLEIUM GAS
Direct Benefit Transfefor LPG consumer (DBTL) is the scheme aimed to improve
the subsidy administration of LPG across the country.

As per this scheme an LPG consumer will get his/her cylinder at full market price
and the differential between subsidized price and full market price i.e. the subsidy
will be transferred to his/her bank account up to a capped limit(9 cylinders in a
year) .

DBTL by Ministry of Petroleum and Natural Gas is the scheme aimed to improve
the subsidy administration of LPG across the country.
 Users can access list of aadhaar enabled banks, DBTL helpline, DBTL forms,
etc. Details related to checking aadhaar enrollment status, aadhaar enrollment
centres, generating e-aadhaar, linking aadhaar to LPG consumer number, etc. are
also available.

 LPG for Domestic Cooking is heavily subsidized. So people use fake

connections and misuse the benefits. If Aadhaar card is integrated with the
customer database of LPG they can eliminate illegal diversion of cylinders.

 From April 1,2014 residents can avail subsidy on 12 cylinders but will have to
pay the non-subsidised rate for the 13th and thereon.
 NATIONAL CHILD LABOUR

 We are soon going to go in for direct benefits transfer for this amount,”
said A.C. Pandey, Joint Secretary, Labour Ministry.

 Overall, there are 7,311 such schools under the NCLP scheme and about
8.52 lakh children have been mainstreamed into formal education.

 There had been a 45 per cent decline in child labour in India from 90.45
lakh in 2004-05 to 49 lakh in 2009-19, mainly due to MGNREGA, the
rural job scheme, and Right to Education. Assured of 100 days work under
the job scheme, parents are now sending children to school, which is
making all the difference
 It is ascertained that the Public Distribution System (PDS) is so ineffective that
58% of the subsidized grains do not reach the targeted group and almost a third
of it is trajected off the supply chain.

 According to the Finance Ministry, the inefficiencies of the PDS cause the
government to spend ₹3.65 for transferring ₹1 to the poor.

 To generate budget savings and reduce corruption, the Government of India

launched the Direct Benefit Transfer (DBT) scheme on January 1st, 2013.

 The DBT scheme aims at cutting a subsidy bill of ₹1,64,000crores apart from
other benefits like better delivery.
 LEARNINGS
 DBT in ultimate analysis aims at poverty
elimination, inclusive growth and delivering
better welfare measures.

 problems with banks, post offices and online

connectivity should be resolved.

 No doubt rampant corruption, inefficiencies

and leakages have made many welfare
schemes dysfunctional

 Direct Benefit cash Transfer to the poor

aims to mitigate these many malaises.

 Considering these benefits, India would be in

right direction to implement cash.
 CONCLUSION
 The new system is expected to reduce this cost and subsidy bill
through better targeting.

 If the entire system is managed through efficient targeting,

disbursement and regular monitoring of the disbursed funds this can
result into transforming the rural India.

 The real success of the policy lies in the accuracy and efficiency in
identification of worthy beneficiaries, i.e. BPL Households.
THANK
YOU