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Direct Benefit Transfer

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Direct Benefit Transfer (DBT)
CountryIndia
MinistryDBT Mission/Division, Cabinet Secretariat
Key peopleLaunched under PM Manmohan Singh and expanded under PM Narendra Modi
Launched1 January 2013; 11 years ago (2013-01-01)
StatusActive
Websitedbtbharat.gov.in

Direct Benefit Transfer or DBT is an attempt to change the mechanism of transferring subsidies launched by Government of India on 1 January 2013. This program aims to transfer subsidies directly to the people through their bank accounts. It is hoped that crediting subsidies into bank accounts will reduce leakages, delays, etc.[1][2]

History

On 14 February 2011 a task force under Nandan Nilekani was set up to suggest solutions to creating a system to undertake direct transfer of benefits to beneficiaries.[3]

A DBT Mission was created as the nodal agency. It was set up under the Planning Commission, shifted to the Department of Expenditure in the Finance Ministry and then the Cabinet Secretariat in September 2015.[4] This signaled that DBT was not the domain of any one ministry and that various ministries would have to prioritize implementation under central oversight.[5]

The primary aim of this Direct Benefit Transfer program is to bring transparency and terminate pilferage from distribution of funds sponsored by Central Government of India. In DBT, benefit or subsidy will be directly transferred to citizens living below poverty line.

Central Plan Scheme Monitoring System (CPSMS), now the Public Financial Management System (PFMS), being implemented by the Office of Controller General of Accounts (Ministry of Finance), acts as the common platform for routing DBT.[5] CPSMS/PFMS is used for the preparation of beneficiary list, digitally signing the same and processing of payments in the bank accounts of the beneficiary using the Aadhaar Payment Bridge of NPCI.[5][6][7]

The program was launched in selected cities of India on 1 January 2013.[8] Former Union Minister for Rural Development of India Jairam Ramesh and former Chief Minister of Andhra Pradesh N. Kiran Kumar Reddy inaugurated the scheme at Gollaprolu in East Godavari district on 6 January 2013.[9][10]

Enabled by the Jan Dhan, Aadhaar, and Mobile (JAM) trio.[5]

DBT schemes

Number of schemes under DBT.[11][12] Total schemes in 2021-22 is 313 (cash + in kind).[11]

DBT came into effect on 1 January 2013 with seven central sector schemes in 20 districts.[13] In effect only 1 district was able to manage the roll out.[9] Following a prime ministerial review, the government decided to extend DBT to 27 central schemes in 78 more districts of the country from 1 July 2013.[13][14]

On 1 June 2013, the minister of Petroleum and Natural Gas, M Veerappa Moily formally launched the direct benefit transfer scheme for LPG (DBTL) in 20 high Aadhaar coverage districts. The subsidy on LPG cylinders would be credited directly to consumers' Aadhaar-linked bank accounts. All Aadhaar-linked domestic LPG consumers will get an advance in their bank account as soon as they book the first subsidized cylinder before delivery. On receiving the first subsidized cylinder, subsidy for next will again get credited in their bank account, which can then be available for the purchase of the next cylinder at market rate until the cap of 12 cylinders per year is reached.[15] A modified Direct Benefit Transfer of LPG (DBTL) scheme in 54 districts in 11 states was started 15 November 2014 whereby LPG consumers who have not yet availed the benefit will be able to get cash subsidy amount transferred into their accounts to buy Liquefied Petroleum Gas (LPG) cylinders at market price.[16]

In a review by the Prime Minister's Office on 5 August 2013, the minutes reported that two schemes dominated transfers through CPSMS - 83% of all transfers were for the Janani Suraksha Yojana and scholarships. Lack of computerized records for schemes to be linked to DBT was hindering rollout. The minutes show that out of 39.76 lakh beneficiaries who ought to have been covered under various schemes, only 56% had bank accounts, 25.3% had both bank accounts and aadhaar numbers, but only 9.62% have bank accounts seeded with aadhaar numbers.[17]

74 schemes of 17 ministries of central government were under DBT by 31 May 2016.[18][19]

See also

Benefits related
Digital related

References

  1. ^ "DBT (Direct Benefit Transfer), MIS-DBT, Ministry of Finance, Department of Expenditure". Planning Commission. Archived from the original on 3 April 2016. Retrieved 21 November 2014.
  2. ^ Laskar, R. K. (2 April 2013). "Direct cash transfer: A game changer move". The Financial World. Archived from the original on 10 February 2018. Retrieved 30 January 2018.
  3. ^ Sharma 2021, p. 32-33.
  4. ^ Sharma 2021, p. 34, 42.
  5. ^ a b c d Sharma 2021, p. 42.
  6. ^ Homepage. Central Plan Scheme Monitoring System [CPSMS]. Archived 10 May 2015 at the Wayback Machine
  7. ^ "Direct Benefit Transfer – A blessing during the time of Pandemic". nic.in. National Informatics Centre. Retrieved 20 April 2022.
  8. ^ "Direct Benefit Transfer to be launched today". The New Indian Express. 1 January 2013. Retrieved 8 January 2013.
  9. ^ a b Sankar, K N Murali (6 January 2013). "Direct Benefit Transfer scheme finally gets going". The Hindu. ISSN 0971-751X. Retrieved 20 April 2022.
  10. ^ Mukherjee, Sanjeeb (29 January 2013). "Govt to review benefits transfer project on Jan 15". Business Standard. Retrieved 8 January 2013.
  11. ^ a b "Official website homepage". dbtbharat.gov.in. Direct Benefit Transfer Mission, Government of India. Retrieved 20 April 2022.
  12. ^ Sharma 2021, p. 39.
  13. ^ a b Sharma 2021, p. 34.
  14. ^ "DBT scheme to be extended in 78 new districts from July 1, 2013". My Aadhaar Card. Archived from the original on 11 April 2013. Retrieved 7 June 2013.
  15. ^ Jayaswal, Rajeev (1 June 2013). "Moily launches Direct Benefit Transfer Scheme for LPG in Karnataka". The Economic Times. The Times Of India.
  16. ^ "What is Pahal DBTL Scheme?". pahaldbtlscheme.com. 23 December 2014. Archived from the original on 25 December 2014. Retrieved 23 December 2014.
  17. ^ "Meeting of the National Committee on Direct Benefit Transfer (DBT) Programme" (PDF). 5 August 2013. Archived from the original (PDF) on 15 March 2016. Retrieved 21 November 2014.
  18. ^ Aadhaar law will ensure Direct Benefit Transfer reaches genuine beneficiaries: FM Jaitley, PTI, Daily News and Analysis, 15 July 2016{{citation}}: CS1 maint: others (link)
  19. ^ "Aadhaar law will ensure Direct Benefit Transfer reaches genuine beneficiaries: FM Jaitley". DNA India. PTI. 15 July 2016. Retrieved 20 April 2022.{{cite web}}: CS1 maint: others (link)

Further reading

  • Sharma, Rajesh (February 2021), "Direct Benefit Transfer Scheme, India", in Choi, Jinho; Xavier, John (eds.), Digitalization of Public Service Delivery in Asia, Asian Productivity Organization
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