Aadhar Enabled Direct Cash Transfer (DCT) System

Govt. Plans to deliver the benefits accruing from the various schemes to the bank accounts of the beneficiaries directly. It can be MNREGS wages or the cash substitution for the subsidized products.
Beneficiaries will be identified through Aadhar.


It will be launched in 43 districts on Jan 1st (originally 51- but 8 districts are not prepared due to assembly elections in Gujarat and HP)
As of now, pension and scholarship benefits will be transferred.

Aadhar and Bank account is a mandatory prerequisite for it.

PM has constituted a high powered National Committee on Direct Cash Transfers. This committee is expected to facilitate the whole process of identifying the beneficiaries and enabling them to avail benefits through this scheme. It will

• provide an overreaching vision and direction
• provide broad policy objectives and strategies
• suggest the extent and scope of this for various Govt programs and schemes
• coordinate activities of various ministries and agencies involved
• ensure the timely and efficient rollout of the scheme
• Review the progress during implementation 
• provide guidance for mid-course correction 
• Three mission-mode committees on 
• Technology
• Financial Inclusion
• Implementation

Issues -

1. Low penetration of Aadhar and financial inclusion issues.
2. Several logistical, technological and operational issues as seen during pilot projects in Jharkhand.
3. Money can be diverted to other consumptions.

Further Reading - 

http://www.thehindu.com/opinion/lead/the-siren-song-of-cash-transfers/article1504114.ece

http://www.thehindu.com/opinion/op-ed/no-need-for-hype-but-certainly-a-hope/article4185360.ece

http://www.thehindu.com/opinion/lead/the-promise-of-unconditional-money/article4167818.ece