What is DBT Policy?
DBT stands for Direct Benefit Transfer is a government scheme via which all subsidies taken by a citizen is directly transferred to the bank account of the beneficiary if a citizen is below the poverty line. The primary aim of DBT is transparency in the process of monetary benefits transferred by the government whereas charging subsidies below the poverty line are concerned.
How Is DBT Implemented?
The Direct Benefit Transfer implementation is made via the Aadhar card. The Aadhar card has the unique identity number of every citizen and is directly linked to their account. Thus using the Aadhar number it is possible for benefits to be transferred from the government so that subsidies can be given to individuals who are living below poverty line. Another major reason for taking this step is to eliminate excessive poverty in the country. Plus using an Aadhar number to transfer the money, would also ensure complete transparency and hence eliminate any means of corruption in government funding schemes.
PROS of Direct Benefit Transfer
The benefits that are observed through the implementation of this scheme are as follows.
- It eliminates black money pilferage and ensures complete transparency in transactions.
- DBT is an organized process that helps the financially unstable citizens of our country to gain benefits in subsidies like LPG with minimum effort and saves their money.
- The poverty line is reduced and thus the financial gap in the community is somewhat bridged.
- Since it is a government initiated scheme, there are no faults in the subsidies or delay in delivery of services.
- Since subsidized gains are portrayed transparently in the market, there is proper regulation of the market price framework.
- Economic finances circulated by the government will ensure some rise in the GDP.
- These subsidies will help the rural people in the following areas: health services, the growth in net worth of a rural farmer, simplicity in the distribution of funds.
CONS of Direct Benefit Transfer
- The subsidies will be funded by the government as the money will be directly transferred to the bank account. This will mean more money in the hands of the rural citizens below the poverty line. Now, India is not a completely developed country, so it can be possible that the citizen is not educated enough to use this extra money where it is aimed at. Via DBT there are no means to monitor how the money once transferred is being handled, which can be a huge demerit.
- The number of bank branches in rural areas is less. There are no steps being taken to look into that. Therefore, it may sometimes not be possible for rural locales to withdraw the money at desired time.
- In rural areas, people are more conservative. Thus it is obvious that most bank accounts have male beneficiaries. Thus the money can be withdrawn only under their name, whereas the female rural locales may be completely denied of any advantage that DBT offers. This is again a case where money pilfered illegally by one individual will negatively affect another, and the government has no ways to keep tabs.