Aadhaar based Direct Cash Transfer scheme

With almost 2 weeks to go for the launch of much talked Direct Cash Transfer scheme, the authorities are finding it difficult to recognize the beneficiary of this scheme. The petroleum ministry has requested to extend the deadline of LPG cash transfer till April. For the very first time in the country, the government is going to directly transfer the cash of scholarship, pensions and welfare scheme into the beneficiary account linked with the Aadhaar platform. The entire process of direct cash transfer is hoped to check the problem of corruption up to some extent. The government has already announced to start 34 subsidy schemes in 51 districts from January 1, 2013.

Advocate of this type of implementation have praised the government’s decision of the Direct Cash Transfer based on the Aadhaar platform. The UPA government is looking very curios for the launch of this scheme especially when the 2014 elections are not very far away from now on. Rahul Gandhi is very sure that his party will win not only this election but also the next if the Direct Cash Transfer scheme is implemented successfully in the entire country.

The government is expecting to transfer more than Rs. 300k crore in 2013 directly to the beneficiaries. The supporters of this scheme claims that the country is having a cash transfer scheme presently as well where the whole process of transferring the cash to the poor is carried out with the help of post offices and banks.

Well the implementation may not prove to be very successful because of the lack of banking facilities in a large number of villages in the country. The official stats have showed that by March this year out of a total of around 6 lakh villages, only 1.5 lakh villages had banking facilities. Another shocking stat reveals that only 2/5 population of this country is having a bank account while the rest 3/5 country’s population is not even having a bank account. Banks also show no interest in going to the rural areas because of less profit. The regions where there is no banking or ATM facilities, the Business Correspondents (BCs) are supposed to avail the benefits to the beneficiaries.

Another major problem in implementing the Aadhaar based Direct Cash Transfer scheme is that only about 22 crore people have Aadhaar number, majority of which comes from the urban areas and about 45% of the country’s BPL population resides in the rural areas for whom the scheme is mainly intended. This means that if BCs are not available then they might not be able to get the advantages of this scheme. Reports have also claimed that people have not received their payment in Jharkhand where the Aadhaar based payment for MNREGA scheme started last year.

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