Direct Benefit Transfer Scheme

Direct Benefit Transfer Scheme happens to be a way of providing subsidies, scholarships and other welfare benefits to the deserving economical sections of society in form of cash payments by the state or federal government. Recently, government has announced LPG subsidy directly into the bank accounts of eligible consumers. It has come into effect with the objective of ruling out so many complications and to benefit millions of poor people.

It helps eliminating middlemen so that leakages could be reduced, any type of corrupt practices could be demoted and moreover, we can get rid of fake and duplicate beneficiaries. As people get their benefits directly into their bank accounts, it helps avoiding any delay in the transfer of money and encourages more people to have their bank accounts. As the entire amount goes into the bank, it results in the inclusion of money in the market which helps the economy and that results in an increase in GDP. Through this scheme, government expenditure could be reduced as it does not require any more to pay for rented fair price shops.

This scheme is a far better way to reach to beneficiaries but this, too, has some loopholes.

Still there are people who are unaware of such beneficiary schemes and some do not have their bank accounts, thus, they cannot be benefitted. Besides, it is much difficult to find out the deserving beneficiaries as a large part of population in India does not bother to pay income taxes and so their real wealth cannot be determined. Furthermore, the beneficiaries who are able to avail such benefits do not spend their amount for their intended purposes. As we all know that most beneficiaries happen to be men (head) of the families so women are expected not to get their share.

Click here for government certification in Accounting, Banking & Finance