What is Direct benefit Transfer (DBT)? How is it different from Direct Cash Transfer (DCT)? What is the architecture of Direct Cash Transfer (DCT) in India? Read further.
Poverty and unemployment are the biggest threats that comes in the way of both economic growth and human development.
Governments all over the world have taken numerous measures to plug the deficiencies in their service delivery system as a counter against poverty.
Direct Cash Transfers is such a measure adopted by the Indian government. Let us get a general idea about it through this article.
Direct Benefit Transfer (DBT)
DBT is a mode of benefit transfer to the beneficiaries directly through their bank accounts so that the frauds in the delivery system is minimised. This helps to ensure that the intended benefits reach the target beneficiaries.
This is an ambitious initiative of the government started on 1st January, 2013.
Direct Cash Transfer (DCT)
DCT is a poverty alleviation strategy adopted by the government. It involves transfer of subsidies and other benefits to the poor in the form of cash.
You might have already understood the difference between DBT and DCT. Well, that’s right. DCT is a subset of a broader DBT scheme of the government.
Architecture of Direct Cash Transfer (DCT) in India
The architecture of direct cash transfer to the public will consist of:
(i). National Ministerial Committee – under the Prime Minister with a membership of all concerned ministers (Finance, IT, Social Justice, HRD, Minorities, Labour, Health, Food, P&NG, Fertilizers, Planning Commission, UIDAI,). This committee at the highest level would ensure coordination and decision-making at the highest level and impart the necessary urgency to the program.
(ii). National Executive Committee – with the Secretaries of all concerned Ministries as members. This committee would meet frequently to coordinate action, ensure adherence to timelines, and sort out hitches in the program as it is rolled out.
(iii). Implementation Mission and Committees – to work on and finalize all operational and implementation details relating to the design and operation of the transfer system. There is a lot of work needed to have a smooth roll-out and has to be done in a Mission mode with multiple agencies acting in a coordinated manner. The Mission will have the following sub-committees:
- Cash Transfer Mission – Technology Committee -to focus on the technology, architecture and IT issues.
- Cash Transfer Mission – Financial Inclusion Committee – to focus on ensuring Universal Access to Banking and achieving complete Financial Inclusion.
- Cash Transfer Mission – Electronic Benefit Transfer (EBT) Committees – to work out the details relating to EBT such as databases, transfer rules, controls, audits, etc. There would be one for each Ministry which is engaging in benefit transfers.
The milestones and timelines for each of these Committees will be clearly laid down. The National Executive Committee will monitor progress and ensure timely roll-out. This scheme will have a momentous impact on the government’s various social programs and help millions of beneficiaries.
To know more about direct benefit transfer (DBT), click here