Much awaited direct cash transfer scheme has been introduced by government of India and it has been incorporated in India from 1st January 2013, via this scheme the subsidy amount will directly go into the account of the beneficiaries.
The government has implemented the scheme of Direct Cash Transfer in 51 districts of India and by the end of 2013 the scheme will cover the whole nation.
About Direct Cash Transfer
It has been introduced in India as poverty reduction measures through which people below poverty will get the cash in there own bank account rather than subsidy. Every one holding Adhaar card should have a bank account via which they can avail the benefit of Direct Card Transfer. Subsidies on LPG, kerosene, Pension payments, scholarships as well as payment under MREGNA and other government welfare programs will come in cash in the account. Persons below poverty line will now get the full benefit which earlier use to get demolished before they come in the hand of beneficiary. Now this money can be used by them to buy services from the market.
The main and effective benefit is that the government can now directly reach out to the beneficiary and they can use the benefits completely and in the proper way. Earlier the intermediaries use to sell the subsidies into the open market and use to make fast cash out of it and the poor people use to get half of what they deserve or sometimes may be less than that. They also use to pay high amount for the services even government has kept prices low for them. So these practices will not come under this system.
Drawback of the scheme is that the Indian System works very slowly. Some of the states are still waiting to get their Aadhaar card despite of the fact that the Government of India is working for the scheme from past 2 years. So those poor people have not got their Adhaar number will not be liable to get this benefit and will even not get the subsidies. Most of the village do not have bank branches so how people will have account over there, so this can limit the reach of the scheme to the whole nation.
Direct Cash Transfer is a good scheme only if BPL family get the full benefit. Government can make the Adhaar Card work fast throughout the nation and bank facility near every village. These steps will make India grow as poverty can be abolished through these small steps.