All welfare schemes to use Aadhaar-based Direct Benefit Transfer: Centre tells ministries

The central government has sought a comprehensive review of all welfare schemes implemented by ministries and departments, saying that all such schemes should be using Aadhaar-based Direct Benefit Transfer (DBT), reported News18. 

The move is aimed at eliminating data duplication and fake beneficiaries and also to ensure smooth disbursal of benefits to beneficiaries of different central government schemes. 

According to the office memorandum issued by the Cabinet Secretariat on June 28, these schemes will need to be notified under relevant sections of the of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, in consultation with UIDAI. 

The DBT is aimed at increasing transparency in the system by transferring subsidies directly to the bank accounts of the beneficiaries. 

As per the latest official data quoted by News 18, 53 ministries have put a total of 313 central sector schemes and centrally sponsored schemes on the DBT Bharat Portal. In 2019-20, the number of Cash beneficiaries stood at 70.6 crore while that of In-kind beneficiaries was 74.1 crore. These numbers went up to 98 crore and 81.9 crore respectively in 2020-21. 

Earlier this month, Prime Minister Narendra Modi had said that since 2014, Rs 23 lakh crore has been transferred to the beneficiaries of central government schemes through digital payment modes under the DBT mechanism. 

The Cabinet Secretariat order said that Aadhaar ensures cost-effective authentication of beneficiaries on a real-time basis and eliminates fake beneficiaries by removing duplication of records. It added that Aadhaar can also be used as a financial address as more than 77 crore bank accounts are linked with it.