Latest Posts


Monday, July 29, 2013

Finance Ministry tells bankers to seek Aadhaar numbers for DBT for Direct Benefit Transfer

NEW DELHI: Seeking to expedite implementation of Direct Benefit Transfer scheme, Finance Ministry on Thursday asked the banks to approach the customers for submission of Aadhaar number to ensure seamless transfer of cash benefit. 

"Today I have asked my office to issue an advisory to all the chairmen of the banks to say that banks must directly approach the beneficiary and get the Aadhaar number and seed it into bank account," Finance Minister P Chidambaram said in an interview to DD News. 

Describing the DBT a "game changer", he said, "80 per cent (seeding of Aadhaar with bank account) is doable, achievable and with the advisory going out today, the roll out can be quite rapid in the remaining districts." 

Linking or seeding of Aadhaar number with the bank account of beneficiary is necessary to ensure seamless transfer of cash benefit relating to various government scheme like LPG subsidy, scholarships and pension. 

"We are asking for 80 per cent seeding only because we think that in the remaining 20 per cent, 10 per cent may be duplicate or false account and 10 per cent for whatever reason may not wish to claim the subsidy through the Aadhaar platform," he added. 

On transfer of LPG subsidy, Chidambaram said, "It is an easy subsidy to be transfered. There is only one pay master which is the government of India to oil companies." LPG subsidy, he further said, would be rolled out throughout the country by the end of the year. 

Asked what kind of savings the government can achieve through the DBT scheme, the Finance Minister said "Quite a bit...there will be huge saving. I think this will bring greater efficiency, transparency, accountability besides of course giving me significant savings." 

Citing an example, he said, "If say one crore LPG beneficiaries are not genuine beneficiaries and we knock out out one crore every month atleast for 9 cylinders at the subsidy rate of about Rs 500 a cylinder. I will save Rs 500 crore a month and 9 cylinders I will save Rs 4,500 crore." 

The aim of DBT is to get the money in the bank account, he said, adding, the Aadhaar provides the platform, there is another platform in the usual banking channel. 

"When Aadhaar is not there, it means the payment will not go through Aadhaar payment channel, but it will still go through NEFT as long as the bank is able to identify the account by the account number and authority who is making the payment knows the account number," he said. "So, today the payment is going through two channel. The goal is that all the payment should move to Aadhaar channel," he added. 

The DBT has been rolled out in 121 districts from July 1 across the country. The Finance Minister said the DBT will be extended even for the transfer of food and fertiliser subsidy.

1 comment:

  1. Aadhaar is a very good scheme from the Indian government especially for the poor people from the country. The scheme has been accepted across the country with open hearts and we should appreciate government’s efforts for such type of schemes. The launch of Aadhaar based Direct Cash Transfer scheme is an addition to benefits of the people as it will reduce the corruption involved up to some extent. The genuine beneficiary will get advantages of the welfare programmes from both the state and the central government.