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Budget and Direct Benefit Transfer(DBT): Guest Post by Mr. Y P Issar

Posted on March 06, 2013 by Sumita Kale

DBT for the next financial year has been proposed in a very subdued manner when the FM simply states in the Budget that it will be rolled out across the country during the UPA government term itself that is by 31.3.14 perhaps.


During the last year budget speech, then FM had said that it will the endeavour to scale up(earlier pilots) and roll out these  Aadhaar enabled payments for various government schemes in at least 50 selected districts within next six  months.(para24/25 of Budget speech 2012)


Presently  FM says  that we shall be redoubling our efforts to ensure that digitised lists are available,that a bank account is opened for each beneficiary and that the bank account is seeded with Aadhaar in due course.(para114 of Budget speech2013)


During the implementation during the current financial year, FM has shown great sagacity in lowering the expectations from this programme after personally going to great lengths in gathering grassroots level feedback and listening to senior bankersThis has brought out various micro issues to the fore say mapping of Aadhaar  with NPCI mapper for proper crediting of the accounts.


Two issues need attentionFirstly, the banks have been told by DFS to seed the accounts with Aadhaar number as provided by the lists prepared by the departments concernedWhile these instructions are being complied with, the correctness of this number is not being tested by bankersIf Aadhaar is to be accepted as provided and more so if it is to treated as a full KYC, all bank branches need to be capable of testing aadhaar from UIDAI data baseThis service must be delinked from the AEPS suite and become mandatory.


Secondly, NPCI mapping instructions say that an authority from the beneficiary need to be obtained before mapping which is not being complied with at presentDFS need to resolve this issue.


FM's mature handling of the subject  and also the low key rollout has won him many friends in the banking industry who do not feel rushed throughA stable and phased  roll out will win Government lot of goodwill till Aadhaar coverage is much better.


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NOTE: The author, MrY P Issar is Ex-GM for Financial Inclusion at a Nationalized Bank. Rights of contents of the post rest with the author.

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