Direct Benefit Transfer is the newest mechanism of transferring cash subsidies and benefits to the beneficiaries.

  • It was introduced to address the challenges of physical cash transfer to the beneficiaries.

What you need to know?

  • The funds are directly transferred to the Aadhaar-seeded bank accounts of beneficiaries.
  • Central Plan Scheme Monitoring System under the Office of the Controller General of Accounts is used as the platform for the transfer of benefits.

What benefits from older system?

  • Direct transfer would reduce leakages in subsidy transfer.
  • The delay in the disbursement of subsidies will be reduced.
  • Will help in identifying and removing ghost beneficiaries.

Schemes utilising DBT

 

Source: PIB