What is Direct Benefit Transfer (DBT) and how does it work?

Direct Benefit Transfer (DBT) is a scheme launched by the Government of India to transfer subsidies and welfare benefits directly to the bank accounts of eligible beneficiaries. It aims to streamline the delivery of benefits, eliminate intermediaries, and ensure efficient and transparent disbursal of funds.

Here's how DBT works:

1. Identification: Eligible beneficiaries are identified based on various schemes and programs implemented by the government, such as social welfare schemes, scholarships, pension schemes, LPG subsidies, etc.

2. Aadhaar Linkage: The Aadhaar card, which is a unique identification number issued by the Unique Identification Authority of India (UIDAI), plays a significant role in the DBT process. Beneficiaries are required to link their Aadhaar card with their bank account to receive direct transfers.

3. Bank Account: Beneficiaries must have an active bank account to receive DBT. The bank account is linked to their Aadhaar number, and it serves as the primary channel for receiving the subsidies and benefits.

4. Enrollment: Beneficiaries are enrolled in the DBT system through a registration process where their Aadhaar number, bank account details, and other relevant information are recorded.

5. Transfer of Benefits: Once enrolled, the government transfers the subsidy or benefit amount directly to the beneficiary's linked bank account. This transfer is made electronically through the National Payments Corporation of India (NPCI) using the Aadhaar Payment Bridge (APB) or other payment systems.

6. Monitoring and Transparency: The DBT system allows the government to monitor the disbursement of benefits in realtime. It helps in reducing leakages, identifying duplicate beneficiaries, and ensuring that the benefits reach the intended recipients. Beneficiaries can also track their payment status and transaction history through various channels, such as online portals, mobile apps, or SMS.

By implementing DBT, the government aims to improve efficiency, reduce corruption, eliminate middlemen, and ensure that the benefits reach the targeted beneficiaries directly. It promotes financial inclusion, transparency, and accountability in the delivery of subsidies and welfare programs.