APBS/ DBT

What is DBT?

The Direct Benefits Transfer (DBT) simply involves transferring the subsidy amount and other benefits (called transfers) directly to the beneficiaries bank accounts instead of providing it through government offices.Transfer means payment made by the government without receiving anything in return from the beneficiary. Subsidies, scholarships are the main example for transfers.

What are the Advantages of DBT?

The main advantage of the DBT is that leakages are avoided as the government directly provides the fund to the beneficiary. Money is sent into the bank account of the beneficiary.

Another advantage of DBT is that it helps the government to better target the beneficiary. Here the facilitating mechanism is Aadhaar. Since Aadhaar is the universal ID, government can identity the beneficiary from his Aadhaar details while connecting it with DBT.

Role of Aadhaar under DBT

Linking DBT with Aadhaar information and ID platform is a major achievement. using the Aadhaar-linked data ensures that the right beneficiary receives the money in his account, thereby ensuring transfer to the deserving persons. Recently the government decided that people earning more than Rs.10 lakh a year would not be eligible for the LPG subsidy.