What is Direct Benefit Transfer Scheme ? Its significance

Press Information Bureau (PIB) *

'Direct Benefits Transfer' or 'DBT' means direct transfer of the cash to the beneficiary's bank account. The Central Government wants the money to go only to the beneficiary. Under DBT there is no scope left for some corrupt people to pocket the money meant for beneficiaries by fraudulent means. There are corrupt officers who demand 'commission' to give the beneficiary their entitlement. Now this cannot happen because money will be directly deposited to your bank account. Also in this case there is no scope for duplication. So it is 'Aap Ka Paisa Aap Ke Haath', "Adomgi senpham adomgi khutta leirani."

DBT will be expanded to include post office and schemes run through Post office Accounts from 1st of October 2013. So then you can get DBT to be transferred to your postal account as well. When this is done, the beneficiary can get his/ her money from any Post office throughout the country. The Central Government is also deputing what are called 'banking correspondents'. They are representatives of banks who help villagers open bank accounts. The Banking Correspondent carries a small machine called 'Micro ATM' with him. The villager gives his/her thumb impression and his/her account is opened after verification and thereafter money can be withdrawn.

What are these Micro ATMs?

They are small devices meant for removing small amounts of money. The money can be withdrawn from their Aadhaar enabled bank account by this small device. For the purpose of DBT coverage, efforts are being made to ensure that all micro ATMs that are procured, are Aadhaar enabled. An Aadhaar number is necessary for DBT but as of now it is not compulsory because everybody does not have an Aadhaar card. The Central Government is making all efforts to expand Aadhaar services. As the Aadhaar card will help you with other benefits, it is important to have this card. For now one can get the benefit of DBT by simply having a Bank account but one must get Aadhaar number for this and other future benefits. At present 25 centrally sponsored schemes are covered by DBT. They are provided by Central Government or sponsored by it.

What are these schemes?

Seventeen of these are scholarship related schemes under various ministries. Others are Indira Gandhi Matritiva Sahyog Yojana, Dhanlakshmi scheme, Janani Sureksha Yojana, housing subsidy for Beedi workers, stipend for SC/ST for coaching, guidance and vocational training, stipend to trainees under the skill development scheme in left extremism affected 34 districts. Basu, a student of class X wanted to know more about the scholarship schemes covered under DBT.

These schemes are covered under DBT as of now - Post Matric Scholarship for SC students, Pre matric Scholarship for SC students,Pre- Matric scholarship for children of those engaged in unclean occupations.Upgradation of Merit of SC students, Post Matric scholarship for OBC's, Top Class Education Scheme, Fellowship Schemes of UGC, Fellow ship scheme of AICTE, National Means Cum Merit Scholarship, National Scheme for Incentives for the Girl Child for the Secondary education. Post Matric Scholarship Scheme for ST, Top Class Education System, Rajiv Gandhi National Fellowship, Matric scholarship scheme under Minority Affairs, Maulana Azad National Fellowship, Merit Cum means Scholarship scheme, Scholarship to the children of Beedi workers.

Are all beneficiaries getting DBT for these Schemes?

The DBT was launched on 1 January 2013 in 43 districts in 16 states and Union territories for these 25 schemes. The second phase was launched on the 1st of July 2013 when 78 more districts were added. Thus in all, 121 districts would get covered under DBT. More schemes are planned to be covered by DBT. Three pension schemes under the Rural Development Ministry for old age, disability and widow pension schemes will also be included. It started from 1.7.2013 in 121 districts. DBT rollout for MGNREGA Scheme may start from 1.10.2013.

Direct Benefit Transfer for LPG

Very soon people will start getting subsidy for cooking gas directly into their account. The central government has launched Direct Benefit Transfer for LPG scheme in 20 districts from the 1 st of June, 2013. But for that Aadhaar number is a must. Every one gets subsidy on cooking gas cylinder. At present the consumers are getting a subsidized gas cylinder from the market and the companies that provide the cylinders get the subsidy. But in this case the 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.

All Aadhaar linked domestic LPG consumers in these 20 districts will get an advance subsidy amount for one month in their bank account as soon as they book the first subsidized cylinder even before delivery. This is to reduce their financial burden when they purchase the first LPG cylinder after launch of scheme at market rate. Once the first cylinder is delivered to such consumers, subsidy eligible on date of delivery will again get credited in the bank account, which will then be available for the purchase of the next cylinder at market rate. One can get subsidy for up to 9 cooking gas cylinders in a year which will be directly transferred to the Aadhaar enabled bank account of the consumer. Consumers who do not provide Aadhaar will continue to get LPG cylinders at market price.

What is the process?

If one already has a bank account then get it linked with Aadhaar number in the bank branch. Also provide your Aadhaar numbers to LPG distributors for linking with LPG consumer number. For the benefit of LPG consumers, companies that provide the cylinders have provided the facility on their web-sites to check whether the Aadhaar number has been attached to LPG consumer number/bank account.

If one cannot complete the formalities by the 1 st of June people in these districts will be given 3 months grace period to complete their formalities. After this period, all consumers who have not completed the formality will get LPG cylinders at market price, without any subsidy, till they complete the same.

Where to get information about various schemes of the Central Government?

Information on various schemes of the Central Government is available at the Public Information Campaigns which the Central Government holds in the districts from time to time. Information can also be got from the Panchayat Ghar and the District Collector's office about the different schemes. It truly is 'Aap Ka Paisa Aap Ke Haath', "Adomgi senpham adomgi khutta leirani." Let's hope that more schemes will be covered under DBT and the whole of the country will be covered.