{"id":32359,"date":"2023-02-27T06:29:57","date_gmt":"2023-02-27T00:59:57","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=32359"},"modified":"2025-04-19T10:51:49","modified_gmt":"2025-04-19T05:21:49","slug":"how-direct-benefit-transfer-scheme-has-transformed-social-welfare-in-india","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/how-direct-benefit-transfer-scheme-has-transformed-social-welfare-in-india\/","title":{"rendered":"How Direct Benefit Transfer scheme has transformed social welfare in India"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>About Direct Benefit Transfer (DBT)<\/strong><\/li>\n<li><strong>DBT Process<\/strong><\/li>\n<li><strong>Achievements of the DBT Program<\/strong><\/li>\n<li><strong>News Summary<\/strong><\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h3><strong>Why in News?<\/strong><\/h3>\n<ul>\n<li>On February 21, the Seattle City Council became the first city in the United States of America (USA) to ban caste-based discrimination.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong>About Direct Benefit Transfer (DBT)<\/strong><\/h3>\n<ul>\n<li>Government of India launched the Direct Benefit Transfer (DBT) Program on <strong>1<sup>st<\/sup> Jan 2013<\/strong>.<\/li>\n<li>With DBT program, GoI aims to <i><strong>make payments directly into the Aadhaar-linked bank accounts of the end beneficiaries<\/strong><\/i>, removing any malpractices from the existing system such as diversions and duplicate payments.<\/li>\n<li>The primary objective of the DBT program is to <i><strong>bring transparency and terminate pilferage from distribution of funds sponsored by Central Government<\/strong><\/i>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong>DBT Process<\/strong><\/h3>\n<ul>\n<li>The following are the steps or sub-sections, which are the major checkpoints in the Direct Benefit Transfer process \u2013<\/li>\n<li>Public Financial Management System (PFMS) registration.<\/li>\n<li>Examination of eligibility of the beneficiary.<\/li>\n<li>Verification of the beneficiaries&#8217; bank account\/ Aadhar Enabled bank account.<\/li>\n<li>Initiation of the payment<\/li>\n<li><strong>PFMS<\/strong> (Public Financial Management System) is a Central Plan Monitoring System of the Ministry of Finance, Government of India.<\/li>\n<li>It is used as a common platform to carry out both Aadhar and non-Aadhar e-payments for the DBT program.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong>Achievements of the DBT Program<\/strong><\/h3>\n<ul>\n<li>The first payment was made to a mother in the Puducherry for the Janani Suraksha Yojana in January 2013.<\/li>\n<li>Since then, <i><strong>DBT has helped in reforming Government delivery system by re-engineering the existing process in welfare schemes for simpler and faster flow of information\/funds<\/strong><\/i>.<\/li>\n<li>The benefits include accurate targeting of the beneficiaries, de-duplication and reduction of fraud.<\/li>\n<li><strong>DBT during Covid-19 Pandemic \u2013<\/strong><\/li>\n<li>Between March 24 2020 and April 17 2020, the DBT payments under all the central sector\/centrally sponsored schemes through Public Financial Management System (PFMS) amounted to <i><strong>Rs 27,442 crore in the accounts of 11.42 crore beneficiaries<\/strong><\/i> through schemes like PM-KISAN, MGNREGS, NHM, etc.<\/li>\n<li>By 2022, more than <strong>135 crore Aadhaar cards<\/strong> have been generated, there are <strong>47 crore beneficiaries under Pradhan Mantri Jan Dhan Yojana<\/strong>, <strong>6.5 lakh Bank Mitras<\/strong> delivering branchless banking services and mobile subscribers number more than 120 crore.<\/li>\n<li>On the basis of this wide network, the DBT program has <strong>318 schemes<\/strong> <strong>of 53 central ministries<\/strong> spanning across sectors.<\/li>\n<li>In rural Bharat, <i><strong>DBT has allowed the Government to provide financial assistance effectively and transparently to farmers with lower transaction costs<\/strong><\/i>.<\/li>\n<li>The DBT system has enabled the government to save significantly on its social-sector welfare expenditure through targeted deliveries.<\/li>\n<li>The <i><strong>Government\u2019s cumulative savings on expenditure, thanks to the DBT till FY21-end, was 2.23 trillion<\/strong><\/i>.<\/li>\n<li>According to an estimate by the Central government the Aadhaar-enabled DBT platform helped in \u2013<\/li>\n<li><strong>Eliminating 41.1 million fake LPG connections<\/strong>,<\/li>\n<li><strong>Eliminating 39.9 million duplicate ration cards<\/strong> and<\/li>\n<li><strong>Resulted in 10% savings on wages<\/strong> on account of the deletion of non-existent MGNREGS beneficiaries.<\/li>\n<\/ul>\n<p>\u200b\u200b\u200b\u200b\u200b\u200b\u200b<\/p>\n<h3><strong>News Summary<\/strong><\/h3>\n<ul>\n<li>Transfer of subsidies to the beneficiaries through the Direct Benefit Transfer (DBT) has reached about <strong>Rs 5.5 trillion<\/strong> so far in the 2022-23 FY.<\/li>\n<li>Given that a lot of dues are cleared in the last month of the year, <i><strong>the DBT transfers are expected to surpass Rs 6.3 trillion achieved in FY 2021-22<\/strong><\/i>.<\/li>\n<li>Fertiliser subsidies worth Rs 1.9 trillion have been provided to farmers so far in the current financial year.<\/li>\n<li>This is 53% higher than Rs 1.24 trillion in the whole of FY22 as input costs and global prices of fertiliser doubled in a year or so.<\/li>\n<li>Subsidies worth Rs 1.5 trillion were transferred to beneficiaries via foodgrains under the public distribution system (PDS) so far in FY23.<\/li>\n<li>The food DBT through PDS will likely end the year around Rs 2.2 trillion in FY23, the same as in FY22.<\/li>\n<li>The elevated food DBT is due to Government of India providing free ration to 81.35 crore poor people under the <strong>National Food Security Act (NFSA)<\/strong>.<\/li>\n<li>Also, under Pradhan Mantri Gramin Awas Yojana-Rural (PMAY-R), the DBT benefits have reached <strong>Rs 38,638 crore<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is Pradhan Mantri Jan Dhan Yojana?<\/strong><\/h3>\n<p>Pradhan Mantri Jan Dhan Yojana is a financial inclusion program of the Government of India open to Indian citizens, that aims to expand affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Q2) Is National Payments Corporation of India a government company?<\/strong><\/h3>\n<p>National Payments Corporation OF India is a non-govt company, incorporated on 19 Dec, 2008. It&#8217;s a public unlisted company and is classified as &#8216;company limited by shares&#8217;.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.financialexpress.com\/economy\/direct-benefit-transfers-at-rs-5-5-trillion-this-fiscal\/2993305\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Direct benefit transfers at Rs 5.5 trillion this fiscal<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/www.nic.in\/blogs\/direct-benefit-transfer-a-blessing-during-the-time-of-pandemic\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>NIC.IN<\/u><\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Direct Benefit Transfer aims to make payments directly into Aadhaar-linked bank accounts of end beneficiaries.<\/p>\n","protected":false},"author":5,"featured_media":32360,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-32359","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/32359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=32359"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/32359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/32360"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=32359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=32359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=32359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}