Set up mechanism to monitor DBT implementation: RBI to banks

MUMBAI: The Reserve Bank today asked banks to set-up a monitoring mechanism for periodical evaluation of the progress made in the implementation of the Direct Benefit Transfer ( DBT) scheme by them.

"...SLBC Convener 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," RBI said in a notification.

The review of the progress in implementation of DBT should be included as a regular agenda for discussion in State Level Bankers' Committee (SLBC) and District Consultative Committee (DCC) meetings, it said.

Further, it has directed that the SLBC convener banks will have to submit a monthly statement of district wise progress made in implementing DBT from the month ended April 30 in a prescribed format.

The progress report should be made by the 10th of the succeeding month to the representative regional office of RBI.

In the first phase roll-out of the DBT scheme on January 1, 2013, a total of 43 districts were included to transfer benefits directly to the beneficiary account.

The second phase of the scheme will begin from July 1, covering 78 more districts. All the districts of the country would be covered under the DBT in a phased manner.

In order to facilitate DBT for delivery of social welfare schemes through direct credit to the bank accounts of the beneficiaries, the government has asked the banks to open accounts for all eligible individuals in camp mode with the support of local government authorities.

Banks have also been asked to seed the existing accounts or open new accounts with Aadhaar numbers. They have also been asked to put in place an effective mechanism to monitor and review the progress in the implementation of DBT.

Presently, DBT scheme covers benefits like scholarships, pensions, NREGA wages directly to the bank or Post Office accounts of identified beneficiaries.

However, the scheme does not entail benefits such as subsidies for food, fertiliser and kerosene at present. This will take more time as the issues of entitlement are more complex, as per a government statement.