Aadhaar-linked DBT rollout may be delayed

The state government’s plan to roll out Aadhaar-based direct benefit transfer system for disbursing social security pensions and wages under the employment guarantee scheme is likely to be delayed by at least six months.

Reason: Nationalised banks are refusing to link beneficiaries’ bank accounts with their Unique Identification Numbers (UIN or Aaadhar) without their consent. The banks have asked the government to furnish the consent letter of each beneficiary under these schemes to link bank accounts with their Aadhaar numbers – which is key for introducing Aadhaar-linked direct benefit transfer (DBT) system.

The Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016, which came into effect from September this year, has made it mandatory to take the beneficiaries’ consent to use their Aadhaar details. Aadhaar-based DBT is aimed at preventing misuse of subsidy schemes.

Karnataka has over 56 lakh beneficiaries under 13 different social security pension schemes and about 62 lakh active job card holders under the Mahatma Gandhi National Rural Employment Guarantee scheme. Currently, pensions and wages are being deposited to the beneficiaries’ bank accounts (non-Aadhaar) through the electronic fund transfer system, sources in the government said.

The Rural Development and Panchayat Raj (RDPR) department and Directorate of Social Security Pensions (DSSP) had been making preparations to introduce Aadhaar-based DBT for over a year. They had collected Aadhaar number and bank accounts data of majority of the beneficiaries, and the banks had also taken up the linking exercise without the permission of the beneficiaries, the sources said.

With the Aadhaar Act coming into effect recently, the banks have stopped the exercise of linking and asked the government to furnish individual consent letters.

“We have asked the government to furnish the consent letters for linking bank accounts with Aadhaar numbers. Using one’s Aadhaar data without one’s consent is illegal as per the Aadhaar Act,” Assistant General Manager, State Level Banks’ Committee H K Suresh said.

DSSP Director D R Ashok said the government has now issued direction to all tahasildars and village accounts across the state to obtain the consent letters from the beneficiaries of these schemes on priority. “We have circulated a standard format for obtaining the consent. It is true that obtaining the consent letter from every beneficiary is a huge task. But we have no other option but to follow the Act,” he added.

However, the government is still clueless on the validity of bank accounts that have been already linked to Aadhaar number (with out the consent). It has so far not issued any instruction to officials in this regard. About 14 lakh social security pension beneficiaries and about 19 lakh MGNREG beneficiaries’ bank accounts are already linked with Aadhaar number.
DH News Service