Monday, February 4, 2013

Direct Benefits Transfer (DBT)

What is DBT??
direct benefits transfer is a government scheme that aims :
entitlements and benefits to the people can be transferred directly to them through biometric based Aadhaar linked Bank Account.

  • reducing intermediaries
  • eliminating delay in system
who are intended Beneficiaries
  • student
  • pensioner
  • widow
  • elderly person
  • disabled
  • poor
Paradigm shift
  • problems of duplicate
  • timely reaching
  • service at door-step - for all class same
  • at much lower cost 
  • percentage of Aadhaar number and linked account
  • feedback on the challenges of implementation
  • divided views of Chief Ministers
  • mobile connectivity in backward areas
  • coordination and time & effort


  1. The DBT scheme would be a great help to the beneficiary but there are many lacunae. I think the implementation process is rather too soon. Firstly, the infrastructure is not that strong to support the scheme. There is much problem of transition, people do not have bank accounts and there is time lag in opening bank accounts in banks, post office etc. Moreover, we live in a patriarchal society, so there is high, high possibility that the benefits would be enjoyed by the male members in the family. Adding to that there could be instances that the subsidies are not utilised for the required purpose, so at this end monitoring and evaluation should be very strong. There is another issue which can't be ignored i.e. inflation, the government has to ensure that the cash transferred is meeting the pace of inflation, say the government has to make sure that the cash for subsidised food is enough to make purchase for unsubsidised food.