Direct cash transfer from January 2013

The Centre’s ambitious scheme of electronic direct cash transfer for beneficiaries under the welfare schemes will be rolled out in 51 districts from January 1, 2013.

As per the decision taken by the high level committee headed by Prime Minister’s Principal Secretary Pulok Chatterjee on Friday, direct cash transfer will be implemented in 18 states from April 2013 and rest of the 16 states from April 2014 or earlier. Cash will be transferred to beneficiaries of the Aadhaar linked bank account. The Unique Identification Authority of India (UIDAI) already distributed Aadhaar number to over 21 crore residents and it is expected to give unique number to 40 crore residents by 2014. The UIDAI is set to complete distribution of Aadhaar number to all residents in 51 districts by end of this next month where the scheme will be launched in first phase.

Prime Minister Manmohan Singh already launched distribution of old age pension to beneficiaries through Aadhaar linked bank account at Dudu in Rajasthan recently.

Though the Centre is pushing the cash transfer under the welfare schemes to curtail corruption and pilferage of subsidised items, some of the states have opposed for including public distribution scheme.

“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 platform,” the statement from the PMO said.

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