Direct Benefit Transfer or DBT is an attempt to change the mechanism of

transferring subsidies launched by Government of India on 1 January 2013. This

program aims to transfer subsidies directly to the people through their bank
accounts. It is hoped that crediting subsidies into bank accounts will reduce
leakages, delays, etc.[1]

Contents [hide]
1 Structure
2 History
3 Programs part of DBT
4 See also
5 References
6 External links
Structure[edit]
The primary aim of this Direct Benefit Transfer program is to bring transparency
and terminate pilferage from distribution of funds sponsored by Central Government
of India. In DBT, benefit or subsidy will be directly transferred to citizens
living below poverty line. Central Plan Scheme Monitoring System (CPSMS), being
implemented by the Office of Controller General of Accounts, will act as the common
platform for routing DBT. CPSMS can be used for the preparation of beneficiary
list, digitally signing the same and processing of payments in the bank accounts of
the beneficiary using the Aadhaar Payment Bridge of NPCI.[2] All relevant orders
related with the DBT are available on the CPSMS website.

History[edit]
The program was launched in selected cities of India on 1 January 2013.[3][4] It
was launched in 20 districts, covering scholarships and social security pensions
initially.

Former Union Minister for Rural Development of India Jairam Ramesh and former Chief
Minister of Andhra Pradesh N. Kiran Kumar Reddy inaugurated the scheme at
Gollaprolu in East Godavari district on 6 January 2013.[5] The government has
decided to review the progress on regular basis.[4]

The first review was scheduled to be undertaken on 15 January 2013.[4] According to

P. Chidambaram, former Union Minister of Finance of India, the scheme will be
rolled out across 11 more districts by 1 February and 12 more districts by 1 March
2013.[4]

In April 2013 the government decided to extend the DBT scheme in 78 more districts
of the country from July 1, 2013. The decision was taken by then Prime Minister Dr.
Manmohan Singh after a review meeting.[6] The 78 new districts will include 6
districts each from Uttar Pradesh and Himachal Pradesh, 3 each from Bihar and Tamil
Nadu, 2 from West Bengal and 4 each from Odisha and Gujarat.

In a review by the Prime Minister's Office on 5 August 2013, the minutes reported
that two schemes dominated transfers through CPSMS - 83% of all transfers were for
the Janani Suraksha Yojana and scholarships. Lack of computerized records for
schemes to be linked to DBT was hindering rollout. The minutes show that out of
39.76 lakh beneficiaries who ought to have been covered under various schemes, only
56% had bank accounts, 25.3% had both bank accounts and aadhaar numbers, but only
9.62% have bank accounts seeded with aadhaar numbers.[7]

Programs part of DBT[edit]

National Child Labour Project
Student Scholarship
LPG subsidy
On June 1, 2013, the minister of Petroleum & Natural Gas, M Veerappa Moily formally
launched the scheme direct benefit transfer for LPG (DBTL) Scheme in 20 high
Aadhaar coverage districts. The subsidy on LPG cylinders will be credited directly
to consumers' Aadhaar-linked bank accounts. All Aadhaar-linked domestic LPG
consumers will get an advance in their bank account as soon as they book the first
subsidized cylinder before delivery. On receiving the first subsidized cylinder
subsidy for next will again get credited in their bank account, which can then be
available for the purchase of the next cylinder at market rate until the cap of 12
cylinders per year is reached.[8]

Modified Version of DBTL Scheme : (November 2014) Government of India Introduced

Modified Direct Benefit Transfer of LPG (DBTL) scheme in 54 districts in 11 states
including all in Kerala starting November 15, 2014 whereby LPG consumers who have
not yet availed the benefit will be able to get cash subsidy amount transferred
into their accounts to buy Liquefied Petroleum Gas (LPG) cylinders at market price.
[9]

74 Schemes of 17 ministries of central government were under DBT by 31 May 2016.

[10]