Examine how direct benefit transfers have changed the public service delivery in India.

The direct benefit transfer scheme of India has been lauded as a “logistical marvel” by the international monetary fund, for its achievement to reach millions of people and specifically benefiting women, the elderly and farmers.

What is DBT:

• It is a reform initiative by the government to re-engineer the existing targeted public service delivery process to make it more efficient, effective and faster.
• Direct benefit transfer scheme is used to transfer subsidies directly to the people through their linked bank accounts.
• Beneficiaries are given a bank account and linked with Aadhaar.
• The objective is to improve the delivery system and streamlining the welfare schemes

Factors contributing to success of DBT:

• A multi-pronged strategy has been used to make DBT a success.
• The financial inclusion programme started in a mission mode.
• The schemes and developmental efforts like, Aadhar, Jan Dhan accounts, increased Mobile connectivity and providing banking services in rural areas, all together have made DBT a success.
• Opening bank accounts for all households through the Jandhan scheme, expanding Aadhaar to all and linking bank accounts with Aadhar to avoid duplication.
• Evolving the Public Finance Management System by creating an Aadhar enabled payment system and introduction of UPI, which further expanded the interoperability.
• Use of modern technology and IT tools.
• By 2022, more than 135 crore others have been generated, there are 47 crore beneficiaries under Pradhan Mantri Jan Dhan Yojana, 6.5 lakh Bank Mitras delivering branch less banking services and mobile subscribers number more than 120 crore.

Achievements of DBT:

• It has helped to transparently and effectively transfer financial assistance to the farmers with lower transaction costs for fertiliser subsidies, and other schemes like PM Kisan Samman Nidhi, PM Fasal Bima Yojna, PM Krishi Sinchayi Yojna, etc.
• In urban India, the schemes like PM Awas Yojana and LPG Pahal scheme are using DBT to transfer funds to eligible beneficiaries.
• The DBT has played a pivotal role in enabling the government to reach the last mile and supporting the most deprived sections of society during the Covid pandemic. It helped to transfer free rations under Pradhan Mantri Garib Kalyan Yojana.

Benefits of DBT:

• Financial inclusion.
• Plugging the leakages.
• Currently pilferage and duplication.
• Accurate targeting of beneficiaries.
• Weeding out ghost beneficiaries.
• Fast payment settlement.
• Savings to the exchequer.
• Efficient utilisation of funds.
• Efficiency, effectiveness, transparency and accountability.
• Boosting confidence of citizens in governance.

Way forward:

• Enhance digital financial literacy.
• Create a robust grievance redressal system.

DBT has played a vital role in meeting the diverse needs of India’s population and ensuring balanced, equitable and inclusive growth. The programme has reached tremendous success in achieving the government’s vision of “Sabka Vikas”.