Direct Benefit Transfer Scheme: During the COVID-19 pandemic, when millions of people lost their income due to nationwide lockdowns, the Direct Benefit Transfer (DBT) scheme provided significant relief to those in need. It not only provided financial assistance to millions of families but also demonstrated how effective this method of delivering the benefits of government schemes directly to people. Let’s learn more about it.
What is the Direct Benefit Transfer (DBT) Scheme?
The Direct Benefit Transfer (DBT) scheme is an ambitious initiative of the Government of India aimed at delivering government subsidies and benefits directly to eligible beneficiaries. Previously, subsidies were provided in the form of checks, cash payments, or discounts on goods, leading to problems like corruption and delays. Now, the amount is deposited directly into the beneficiary’s bank account. This system eliminates the role of middlemen and ensures that government assistance reaches beneficiaries in a transparent manner.
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How money is transferred through DBT
When a beneficiary is selected under a government scheme, their bank account is linked to their Aadhaar card. The government then transfers funds directly to that account. This is called Direct Benefit Transfer. This method virtually eliminates the possibility of fraud or forgery as the funds are transferred directly to the beneficiary’s account. This increases transparency and significantly reduces the time taken in administrative processes.
Benefits and Impact of DBT
The biggest benefit of the DBT scheme is that it has ensured the true reach of government schemes. By transferring cash directly to the beneficiary’s account, it has curbed irregularities and corruption. This system has made the payment process faster, simpler, and more reliable. Now, government funds such as subsidies, scholarships, or pensions are reaching people without any delay.
Which schemes are being paid for?
The DBT system is now being used in many major government schemes. These include scholarships under the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-KISAN), MNREGA, the National Social Assistance Program (NSAP), the Pradhan Mantri Matru Vandana Yojana (PMMVY), the National Rural Livelihoods Mission (NRLM), the National Health Mission (NHM), and the National Scholarship Portal. Cash assistance provided during the pandemic under the Pradhan Mantri Garib Kalyan Yojana was also distributed through the DBT system.