DBT system: What is the DBT system, which allows the government to send scheme funds to people? This is how it works..

What is the direct benefit transfer scheme? Often, the common man's question regarding government schemes was, "Is all the money sent by the government truly reaching the needy?" This was a major challenge in the past, but now the picture has changed. All this is possible thanks to the technology we know as "DBT," or Direct Benefit Transfer. Through this technology, over ₹18,000 crore, the 21st installment of the PM Kisan Yojana, reached the accounts of 90 million farmers in the blink of an eye. How does this system work, and how has it eliminated the middlemen? Let's understand this system in detail.

How does the DBT system work?
In simple terms, Direct Benefit Transfer (DBT) is a direct digital bridge between the government and the common citizen. Under this system, the government transfers subsidy or scheme funds directly to the beneficiary's bank account instead of handing them over to a department, official, or village head. Its primary objective is to prevent leakage of government aid.

The foundation stone of this system was laid in India on January 1, 2013. Initially, it was designed by the Planning Commission to closely monitor the distribution of government funds. Given its importance, a dedicated department was assigned responsibility for its implementation from July 2013 to 2015. On September 14, 2015, to make it more effective, the government transferred the responsibility to the Cabinet Secretariat, which now operates under the supervision of the Secretary for Coordination and Public Grievances.

This is how money flows from the government treasury to your pocket.

DBT is not a single software, but a well-planned and integrated initiative. The process operates with complete transparency to ensure that the rightful recipients receive the benefits.

This system is based on the Central Scheme Monitoring System (CPSMS). The government first prepares a list of eligible individuals. Aadhaar card plays a crucial role here. Aadhaar-linked details are used to verify the identity of the individual. Since the funds are transferred directly to the Aadhaar-linked bank account, there is virtually no scope for fraud or embezzlement. As soon as the government releases the payment, it is reflected directly in the beneficiary's account without any human intervention.

Crores Transferred in Seconds
The Pradhan Mantri Kisan Samman Nidhi (PM Kisan) scheme is a prime example of the success of DBT. Under this scheme, landholding farmer families receive an annual assistance of ₹6,000 for agricultural needs. The 21st installment, released by PM Modi today from Coimbatore, was a testament to this DBT effort.

Without this system, the massive sum of ₹18,000 crore would have taken months to deliver to 90 million people through cash or checks, and there was a distinct risk of corruption. DBT ensured that those with higher economic status were automatically excluded from this scope, and only struggling farmers received assistance. Today, the entire money sent from Delhi is safely reaching the accounts of rural farmers, without a single penny being lost. This technology is not only saving time but also strengthening public trust in the government.

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