Direct Benefit Transfer

Advantages of Direct Benefit Transfer

• DBT transfers help expedite the flow of funds and information securely while reducing the possibility of fraud.
• It eliminates the need for intermediaries, including government officers, in transferring the subsidy amount directly into the beneficiary accounts.
• It brings about transparency and reduces instances of pilferage from the distribution of Central Government-sponsored funds.
• DBT ensures accurate targeting of beneficiaries.
• Beneficiaries can link only one bank by seeding the fund deposits to their Aadhaar details to avoid duplication of subsidies.
• It enables the Government to simultaneously reach out to both citizens and beneficiaries of the scheme.

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Types Of Schemes Covered In Direct Benefit Transfer

Cash Transfer 

Under the cash transfer scheme of Direct Benefit Transfer, the Government directly transfers the money to the individual beneficiaries.

The following ways can be used for cash transfer:

• The cash can be directly transferred to the beneficiary's account.
• The State Treasury Account can be used to transfer cash.
• The implementing agency appointed by the Government can make cash transfers.
• The state or central Government can make the cash transfer.

In-Kind benefit transfer

In-kind benefit transfer is a scheme of Direct Benefit Transfer where the Government offers benefits to the beneficiaries in kind either directly or through their implementing agencies.

Here, the Government incurs the expense of procuring a subsidy or benefit. For instance, the Government will buy a particular product, say food grains and offer it for public distribution.

Other transfers

Other than cash and kind transfers, the Direct Benefits Transfer scheme also transfers funds and subsidies to several non -governmental functionaries that help implement government policies until the very end. This includes community workers, NGOs, teachers in aided schools, etc. They are not beneficiaries but are given training, wages, and incentives to serve the beneficiaries.

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