As readers are aware that Reserve Bank of India, on May 3, 2013 has released the Monetary Policy Statement for 2013-14. The Policy statement contains the broad guidelines for the various proposals and the nitty gritty are rolled out in the coming months.
As per paragraph 67 of the said Policy, Direct Benefit Transfer (DBT) is being rolled out in a phased manner with 43 districts taken up in the first phase from January 1, 2013 and will be extended to 78 more districts from July 1, 2013. Eventually, all districts in the country would be covered under the DBT scheme.
The key factor for DBT success is that the beneficiaries should have Bank accounts to receive the social welfare benefits credits.
Hence, RBI vide Cir No. RBI/2012-13/498 RPCD.CO. LBS.BC.No. 75/02.01.001/2012-1 dt. May10, 2013, has advised banks as under:
- Open accounts for all eligible individuals in camp mode with the support of local government authorities,
- Seed the existing accounts or the new accounts opened with Aadhaar numbers and
- Put in place an effective mechanism to monitor and review the progress in the implementation of DBT.
SLBC Convenor Banks and Lead Banks should institute a monitoring and review mechanism to periodically assess and evaluate the progress made in the implementation of DBT by banks.
The review of progress in the implementation of DBT should be included as a regular agenda for discussion in SLBC and DCC meetings and also submit a monthly statement of district wise progress made in implementing DBT from the month ended April 30, 2013 by the 10th of the succeeding month to the respective Regional Office of Reserve Bank.
The consolidate monthly report Pan-India, will assist the various Government Agencies to fine-tune their DBT delivery channels.
- Set up mechanism to monitor DBT implementation: RBI to banks (news.in.msn.com)
- CCPA nod for cash subsidy on domestic LPG (moneycontrol.com)
- ‘Expect greater satisfaction by DBT beneficiaries in 5-6 months’ (thehindu.com)
- Xitstrategies-Rollout of Direct Benefits Transfers started on 1 January 2013 (xitstrategiesnews.wordpress.com)
- Cash Transfers in India potential to save .5% of Indias’ GDP and eliminate 15% subsidy leakages (simplybanking.wordpress.com)