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Direct Benefit Transfer (DBT) - Coggle Diagram
Direct Benefit Transfer (DBT)
Context
DBT has reached hundreds of millions of people and specifically benefitted women, the elderly and farmers
IMF lauded India’s Direct Benefit Transfer (DBT) Scheme as a “logistical marvel”
What is Direct Benefit Transfer (DBT)?
It aims to ensure accurate targeting of the beneficiaries
First, the beneficiaries are determined, and the beneficiary database is digitalized.
It was started on 1st January, 2013.
Beneficiaries will enrol in Aadhaar after the bank account has been set up.
It functions for simpler and faster flow of information/funds
Efforts behind the efficient DBT
Participation of various stakeholders for extensive UPI
Public Finance Management System through Aadhar
Directly receiving of subsidies
Mission-mode approach for financial inclusion
What is the Present status of DBT?
There are 47 crore beneficiaries under Pradhan Mantri Jan Dhan Yojana,
Last mile banking through Bank Mitras
By 2022, more than 135 crore Aadhaar’s have been generated
DBT applicable to many state government schemes
JAM trinity (Jan Dhan Aadhar Mobile)
Advantages of DBT system
It ensures precise targeting of beneficiaries.
It assists in the distribution of grants to worthy candidates
It eliminates the need for middlemen, such as government employees
It is a potent settlement and transaction technology
It lessens the possibility of fraud and leakage of funds
Challenges
Low digital and financial literacy
Low financial services
Aadhar compulsion issue
Low internet penetration
Structural issues
Way forward
Choice-based DBT system
More pilot initiatives are needed
Timely transfer of benefits to beneficiaries
Digital and financial literacy, robust grievance redressal, enhancing awareness
Proper identification of beneficiaries