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How does DBT work?

Curious about Direct Benefit Transfer

How does DBT work?

The Direct Benefit Transfer (DBT) system works through a digital platform to transfer subsidies and benefits directly to the bank accounts of eligible beneficiaries. Here is how DBT works:

1. Identification and Enrollment: Beneficiaries are identified and enrolled in the DBT system based on the eligibility criteria specified for each scheme. This often involves providing necessary documents and information to verify their identity and eligibility.

2. Unique Identification: Aadhaar, the unique identification number issued by the Unique Identification Authority of India (UIDAI), is commonly used for identification and authentication purposes in DBT. Beneficiaries are required to link their Aadhaar number with their bank account.

3. Bank Account Linkage: Beneficiaries are required to have a bank account linked to their Aadhaar number. This bank account serves as the destination for receiving the direct benefit transfers.

4. Aadhaar Authentication: During the disbursement process, the beneficiary's Aadhaar number is used for authentication. Aadhaarbased biometric authentication, such as fingerprint or iris scan, is commonly used to verify the identity of the beneficiary.

5. Government Department/Agency Involvement: The government departments or agencies responsible for implementing the specific schemes or providing the subsidies and benefits play a crucial role in the DBT process. They are responsible for identifying eligible beneficiaries, verifying their details, and initiating the transfer of funds.

6. Payment Gateway: The payment gateway is the digital platform that facilitates the transfer of funds from the government department/agency to the bank accounts of the beneficiaries. It ensures secure and timely transfer of the funds.

7. Direct Transfer: Once the authentication process is successful, the subsidy or benefit amount is directly transferred to the beneficiary's bank account. The beneficiary can access the funds through various means, such as ATM withdrawals, online transactions, or through the use of banking services.

8. Monitoring and Evaluation: The DBT system allows for effective monitoring and evaluation of the subsidy or benefit delivery process. It enables the government to track the flow of funds, monitor utilization, and ensure accountability and transparency.

DBT aims to streamline the delivery of subsidies and benefits, eliminate intermediaries, and ensure that the entitled amount reaches the beneficiaries directly. By leveraging digital technology, Aadhaar authentication, and banking infrastructure, DBT enhances efficiency, reduces leakages, and improves transparency in the welfare delivery system.

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