Direct Benefit Transfer

India’s Direct Benefit Transfer (DBT) system has helped the country achieve cumulative savings of ₹3.48 lakh crore, according to a new quantitative assessment by the BlueKraft Digital Foundation.

  • Genesis – Launched in 2013 to improve the Government’s delivery system.
  • Aim –
    • To reform welfare schemes by re-engineering existing processes.
    • Ensure accurate targeting of beneficiaries.
    • Minimize fraud and achieve de-duplication.
  • Implementation –
    • Initially under the Planning Commission.
    • Currently placed under the Cabinet Secretariat.
  • Key Features –
    • Aadhaar – Not mandatory but preferred in DBT schemes.
    • JAM Trinity – A core enabler of DBT, JAM stands for Jan Dhan Accounts, Aadhaar, and Mobile Numbers.
    • Electronic Payment Framework – Applicable for all Central Sector (CS) and Centrally Sponsored Schemes (CSS).
  • Saved ₹3.48 lakh crore by 2024.
  • Increased beneficiary coverage 16 times, enhancing welfare delivery.
  • Improved Welfare Efficiency Index (WEI) from 0.32 (2014) to 0.91 (2023).
  • Share of subsidies in total expenditure reduced from 16% (pre-2013) to 9% (2023–24).

Source: PIB


Previous Year Question

‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for

[UPSC Civil Services Exam – 2015 Prelims]

(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women’s Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities

Answer: (c)


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