Examine the impact of Direct Benefit Transfer (DBT) on the effectiveness and transparency of welfare schemes for the vulnerable sections in India (Answer in 250 words)

World Bank has termed India's Direct Benefit Transfer Scheme as 'Logistic marvel' for its wool and impact. DBT Scheme - JAM Trinity → Jai Dhan (Zero frills account) & Aadhar (97% + reach) & Mobile (110 crore + mobile user) Impact of DBT in India I Effectiveness: Earlier only 15 paise reached of 1 rupee sent from Delhi (Rajiv Xanthar statement)

i DBT Ensured full amount to reach beneficiaries ii Eliminated corruption and delay in culture iii More than 25 lakh crore were transferred through DBT under different schemes iv Reduction in poverty and other social indicators v Role during Covid-19 crisis directly reaching vulnerable → directly teaching vulnerable (2) Transparency in process: vi Creates a digital trail of transaction vii Reduces chances of fraud → Use of Aadhar biometric in e-Unawak portal fulfillment Challenges with DBT in India: → Subsidy culture → Digital & e-financial literacy Misuse: → Recent BOI digital profiling of employees fraud from JAM accounts → Shanto Kumar Committee Recommendation: Eliminating all subsidies quadrately and shifting to DBT fully in It is DBT transfer that have fuelled UPI and banking revolution in India

Challenges with DBT & e-financial literacy: → VIII Facilitates financial inclusion and ease of living for citizen IX DBT reduces distortion in prices caused by subsidy Challenges with DBT in India: Misuse: → Recent BOI Digital profiling of employees fraud from JAM accounts → Shanto Kumar Committee Recommendation: Eliminating all subsidies quadratically and shifting to DBT fully It is DBT transfer that have fuelled UPI and banking revolution in India

— Pakshal Secretary · AIR 8