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The government has disbursed only about INR 3,124 crore under its much-hyped Direct Benefits Transfer (DBT) scheme in the first year of its implementation ended 31.12.2013. Of this more than 82 INR or INR 2,574 crore was given towards LPG subsidy, launched in June 2013.

This suggests not much has been transferred under other schemes meant for students, minorities, labour and women among others. Moreover, the transactions picked up significantly close to Assembly elections in five states during November-December 2013.

Seeding of Aadhaar number in the bank accounts of beneficiaries has also happened at a slow pace. Although 62 Percent or INR 1,915 crore of the total amount was transferred on Aadhaar platform and the remaining through National Electronic Funds Transfer--a payment system facilitating one-to-one transfers— till December end, much of this can be attributed to LPG subsidy which is entirely done through Aadhaar. Of 4.3 million DBT beneficiaries identified, only 1.8 million (41.86 Percent) have got their Aadhaar number linked with bank accounts.

Besides, after hovering between INR 4 crore and INR one crore during January-August 2013, the value of transactions on Aadhaar suddenly jumped to INR 230 crore in September and increased further to INR 353 crore in October, INR 444 crore in November and INR 606 crore in December. Co-incidentally, Assembly elections in five states were also held in November-December, but DBT transfers didn’t seem to have made an impact on voters as Congress lost in most seats. A government official said “the number of transactions increased by about 20,000 per month from September and this was partly due to polls in five states”.

Another official, however, said the spike in payments could be attributed to the increase in the number of districts in which DBTL (LPG) or subsidy transfers in cooking gas were taking place as it formed almost 90 to 95 Percent of the overall transactions in DBT.

DBTL is currently taking place in 292 districts with around 237 districts added since October. DBT schemes other than LPG has been launched in 121 districts. The country has over 600 districts. Another official said the increase is also due to the fact that one year post the launch of the scheme, there was greater coordination among agencies and the systems started stabalising.

The government had launched DBT on January 1, 2013 to transfer cash directly into bank accounts of beneficiaries across different districts in the country. It covers schemes such as scholarships, Janani Suraksha Yojana, Indira Awas Yojana, unemployment assistance, payment of pension and wages for work under MGNREGA among others.

Source-On Request