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Govt fixes 2017-end target to transfer all subsidies through an Aadhaar-enabled DBT

25 Apr 2016 Evaluate

The government has fixed a 2017 end target to transfer all subsidies through an Aadhar enabled Direct Benefits Transfer (DBT). In order to achieve this, the government is now on a campaign mode to complete Aadhaar seeding in its databases and DBT bank accounts which stands at 63 per cent at present.

With the new Aadhaar Act in force now, government has to aim to make all payments through the Aadhaar Payment Bridge (APB) to eliminate any chance of leakage or payments to wrong beneficiaries. The target is to complete 100 per cent Aadhaar seeding by December 2017 into bank accounts of those receiving the three major benefits --MGNREGA, LPG Pahal and the National Social Assistance Programme

Kerosene subsidy, part of PDS (Public Distribution System) is planned to be brought on the DBT platform by March 2017. The longest target is for fertiliser subsidy coming under DBT--end of 2018. All this will culminate into 100 per cent Aadhaar-enabled DBT by 2017-end. 

Beneficiaries getting subsidies through DBT into their bank accounts have crossed the 30-crore mark. According to the government report, in February, the centre transferred Rs 4,707 crore to 30.01-crore beneficiaries through the DBT mechanism, but only 35 per cent of such transfers -- Rs 1,630 crore to be precise -- were using the Aadhaar APB while the rest were using simple electronic fund transfers into bank accounts of the beneficiaries.