SUCCESS OF DBT IN INDIA

Presented by – Abhishek Goyal

Harekrishan kumar Prem Narayan Shivam Gubrele

PRESTIGE INSTITUTE OF MANAGEMENT GWALIOR

Aapka Paisa Aapke Haath

WHAT IS DBT ?Mechanism of transferring subsidiesTransfer of the cash to the beneficiary's bank

account No scope left for some corrupt people

DIRECT BENEFIT TRANSFER(DBT)

DIRECT CASH TRANSFER(DCT)

ELECTRONIC BENEFIT TRANSFER (EBT)

What will DBT do?Direct Benefit cash Transfer 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 accounts.

Initial Phase of DBTS

The direct benefit transfer scheme (DBTS) was launched by the then prime minister of india manmohan singh on 1 january 2013 in 20 districts of india. The scheme was inaugurated in east godavari district on 6 january 2013. By the end of march 2013 it was envisioned to be cover 26 social welfare programmes in 43 districts of 16 states.

P R I M A RY A I M S

• To bring transparency and terminate corruption.

• 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.

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).

Some main scheme of goverment

• LPG subsidy • K-Oil subsidy • MGNREGA• Pension • Scholarship

Direct Benefit Transfer for LPG 

LPG scheme in 20 districts from the 1 st of June, 2013.

subsidy money will directly go to the consumer's account and not to the distributer's account.

This will reduce the chances of leakages and prevent black marketing in the sale of cooking gas cylinders.

K-Oil subsidy•Phase I – Direct Transfer of Subsidy through State/ UT Governments in the bank account of beneficiaries. �

• Phase II will aim at transferring the cash equivalent of subsidy directly to beneficiaries through their bank accounts by linking transactions to Aadhaar.

MGNREGAImplemented in ludhiana district in 2008

Employment in rural areas

objectives: Generating productive assets, protecting the environment, empowering Women

• Scholarship and Pension

• 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.

• The main advantage of the DBT is that leakages are avoided as the government directly provides the fund to the beneficiary. Money is sent into the bank account of the beneficiary.

• Another advantage of DBT is that it helps the government to better target the beneficiary. Here the facilitating mechanism is Aadhaar. Since Aadhaar is the universal ID, government can identity the beneficiary from his Aadhaar details while connecting it with DBT.

SUCCESS OF DBT IN INDIA

Presently, 66 Schemes of 15 Ministries on DBT

Rs. 61,822 cr distributed to 31 cr beneficiaries in 2015-16

Around 76 lakh students got scholarship in 2015-16

Over 36 lakh farmers have registered themselves for DBT.

It is estimated that over the time it could save up to 1.2% of GDP

The program is inspired by such successful schemes existing in countries like Brazil and Mexico and cities like New York and Washington. In India too, introducing this new way of physically-delivering subsidies may seem a brilliant technological shot to end the middlemen fraud.