DBT stands for Direct Benefit Transfer, which is a program launched by the Government of India on January 1, 2013. The program aims to transfer funds directly into the bank accounts of the underprivileged in need of financial aid, removing intermediaries to process the transfer. The program covers several central schemes, including National Child Labour Project Student Scholarships, LPG subsidy, Dhanlakshmi Scheme, Janani Suraksha Yojna, and more. The primary aim of the DBT program is to bring transparency and terminate pilferage from the distribution of funds sponsored by the government.
DBT helps to directly transfer the subsidy benefits of the underprivileged into their bank accounts for transparency in fund distribution. The program intends to establish a Giro system to transfer subsidies directly to the people through their linked bank accounts. The program has been successful in disbursing a whopping Rs 8.22 lakh crore directly to the bank accounts of beneficiaries since 2014.
Banks play a critical role in the DBT process flow, as all account-based payments are routed through the core banking channels. The DBT program aims to make direct payments in the bank account of the beneficiary, and the Aadhaar-linked bank accounts confirm the identity of the right beneficiaries. The program has helped in removing malpractices such as diversions and duplicate payments.
In summary, DBT is a program launched by the Government of India to transfer funds directly into the bank accounts of the underprivileged in need of financial aid, removing intermediaries to process the transfer. The program covers several central schemes, and its primary aim is to bring transparency and terminate pilferage from the distribution of funds sponsored by the government.
