Cash-out: Issues with direct benefit transfer's growing ambit

Last week, the International Monetary Fund termed the deployment of India’s Direct Benefit Transfer (DBT) scheme as a logistical marvel.

Coverage under DBT has increased 85 times since its initiation in 2013-14.

But a Business Standard analysis shows that the cash component under the scheme has reduced.

Instead, in-kind transfers have overtaken cash benefits. In-kind schemes, introduced in 2017-18, accounted for only 10.8 per cent of total benefits (cash and kind) dispensed under DBT. Today, in-kind transfers account for 60 per cent of total benefits.

Nevertheless, the government claims that the DBT has led to savings worth Rs 2.23 trillion.

Meanwhile, a study by Dvara-Haqdarshak conducted during the pandemic shows that cash-out problems persist for most households.

Six in ten households faced more than one or more issues during cash-out.

Moreover, one of the significant problems for households registered for cash transfers was the disruption in the payment schedule.

Nearly half of the respondents facing troubles under DBT listed disruption in payment schedule as an issue.

One in five listed bank accounts and Aadhaar-related problems as an impediment.