Direct Cash Transfer scheme from January next year

NEW DELHI: The ambitious electronic Direct Cash Transfer scheme for beneficiaries of subsidised items will be rolled out from January next year and is expected to cover 16 states by April 2014, the government announced today.

The scheme, which is aimed at curtailing corruption and pilferage of subsidised items, will be based on the payment platform of Aadhaar which is also to be rolled out speedily in line with it.

These decisions were taken at a meeting held by the Prime Minister's Principal Secretary Pulok Chatterjee with secretaries and representatives of various ministries and departments concerned.

As per the roadmap, the scheme will be rolled out in 51 districts from January one next year. It will cover 16 states from April one 2014, according to a PMO statement.

"It was decided that all departments engaged in transferring benefits to individual beneficiaries will quickly move to an electronic Direct Cash Transfer system, based on an Aadhaar Payment Bridge/Platform," the statement said.

"They will identify the schemes to move to this system and also prepare a roadmap with timelines so that the rollout is smooth and fast," it said.

The list of schemes, roadmaps and timelines will be sent to the Planning Commission and PMO by 20 November 2012. UIDAI will set up a dedicated cell of technical experts in UIDAI to facilitate Aadhaar enabled Direct Cash Transfers and help individual ministries.

Department of Financial Services will go for universal financial inclusion through individual bank accounts for all in line with the roadmap. UIDAI will rollout Aadhaar speedily in line with the roadmap, it said.

Departments will work towards digitising their databases quickly, particularly at the state level, with the help of state governments, Department of IT and NIC to ensure convergence.