Direct Benefit Transfer (DBT) was launched by the Government of India on 1st January, 2013 for re-engineering the existing delivery systems and process flows to ensure that benefits go to individuals' bank accounts electronically, minimizing tiers involved in fund flow thereby reducing delay in payment, ensuring accurate targeting of the beneficiary and curbing pilferage and duplication.
DBT covers all Central Sector and Centrally Sponsored Schemes where cash benefits are transferred to individual beneficiaries. This was expanded to include all welfare/subsidy schemes, which involve cash or in kind benefit transfers to beneficiaries as well as transfers made to various enablers of Government schemes like community workers, NGOs, and others.
Where applicable, benefits transferred to individual beneficiaries, community workers, NGOs, etc. under State schemes will also be brought under the ambit of DBT.
Since Aadhaar provides unique identity and is useful in targeting the intended beneficiaries, Aadhaar is preferred and beneficiaries are encouraged to have Aadhaar. However, till such time Aadhaar is available, the Government will continue with non-Aadhaar based DBT.
DBT envisages transparent and accountable governance that will instill confidence of the citizens in the Government.