M A I N   N E W S

PM unveils direct cash transfer plan, asks officials to meet big challenge
Tribune News Service

New Delhi, November 26
Prime Minister Manmohan Singh today unveiled the Aadhaar card-based cash transfer system that would commence in 51 districts from January 1.

The programme which is being touted as the government’s trump card before the 2014 elections seeks to marry technology and banking to transfer benefits of government schemes straight into the bank accounts of beneficiaries.

In his closing remarks at the first meeting of the National Committee on Direct Transfers, the PM said the timelines were ambitious. Fifty-one districts would roll out the scheme from January next year, 18 states from April and rest of the country later in 2013.

Emphasising the benefits of the scheme, the PM said the funds that were provisioned for direct benefits such as pensions, scholarships and healthcare must reach the intended beneficiaries without delay and leakages. “Apart from these direct benefits, the government also provides an amount of over Rs 3 lakh crore in subsidies which also must reach the right people,” he added.

He also pointed out to the challenges that a scheme on such a large scale would bring. “This is a programme in which the implementation capacity of our government will be tested. We must ensure that there is no duplication of effort, and technology is used to the fullest for efficiency gains,” he added.

He directed the Finance Ministry and the Unique Identification Authority to work in close coordination. Aadhaar and financial inclusion were the twin pillars for the success of the system of direct cash transfers. “If either of these pillars is weak, it would endanger the success of the initiative,” he added.

To move closer to the goal of financial inclusion, the banking system would perhaps need to integrate the post office network, especially in rural parts of the country, he added.

The banks would need to ensure that the front-end infrastructure was in place all over the country so that people did not have any trouble in opening bank accounts and withdrawing and depositing cash.

The Unique Identification Authority must ensure that the Aadhaar coverage was adequate and no one was left out. An Aadhaar number should be available on demand if beneficiaries were getting left out, he added. He also asked various ministries to digitise their databases and seed them with Aadhaar numbers.

REACHING THE TARGET

• The system seeks to marry technology and banking to transfer benefits of govt schemes straight into the bank accounts of beneficiaries
• Besides pensions, scholarships and health care benefits, the system will also be used to transfer subsidies to the intended beneficiaries
• Fifty-one districts would roll out the scheme from January next year, 18 states from April and the rest of the country later in 2013