Status And Performance of Direct Benefit Transfer (DBT) Scheme in Karnataka

TARGET GROUP: PUBLIC

OBJECTIVES

·        To bring end-to-end transparency through re-engineering the processes and control leakages by cutting out middlemen by adopting a system-based approach for managing schemes and reducing human contact in delivery services.

SUMMARY

Main benefit of DBT is receipt of wages on time and regularly without any deductions. The problem of delay due to manual intervention, pressures, losses on account of payment of commission etc. have been obviated. However, for enrolment under DBT, a beneficiary who did not have any savings bank account will have go through the entire process of opening the account in the bank, then to seed the Aadhar with the scheme and with the bank account, each process requiring submission of multiple documents to both the concerned Taluk Offices and the banks. For some beneficiaries distance to the concerned branches is a major constraint. Normally in rural places the branches are sparsely placed and some branches are not properly connected by the transport services. As such visiting the banks only for this purpose entails cost and time because of which they might lose the wages for the day. Most of the beneficiaries being illiterate are diffident to approach the bank staff and draw the wages Getting wages through Banking Correspondents (BCs) mode is a better proposition since BCs can service the nook and corners of the villages. However, though the concept is good the system of BCs is not yet stabilized which if resolved will go a long way in meeting the dire needs of the needy section.

REFERENCE

https://kmea.karnataka.gov.in/storage/pdf files/Reports%20and%20other%20docs/DBT%20English.pdf