Govt to kick-start Aadhaar-based cash subsidy transfers by 1 January

The national committee set up by the prime minister on direct cash transfers to beneficiaries under various government programmes, which met on Friday, decided to start roll-out of the cash transfer scheme across the country, leveraging the Aadhaar platform by the New Year.

The meeting also 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 payment bridge/ platform.

They will identify the schemes to move to this system and also prepare a roadmap with timelines so that the rollout is smooth and fast.

The committee will identify the schemes to move to this system and also prepare a roadmap with timelines so that the rollout is smooth and fast.

Each scheme will broadly have covered 51 districts by 1 January 2013 and will be available in 18 states by 1 April 2013. And, by 1 April 2014, the scheme will achieve 10 per cent roll-out in 16 states.
 
The meeting discussed ways to move forward and operationalise direct cash transfers for which many steps need to be taken, keeping in view the roadmap already prepared for direct cash transfers of LPG Subsidy.

The necessary steps include identification of areas where such transfers can be introduced, establishing mechanisms for preparing rollout plans for these areas, ensuring rapid rollout of Aadhaar to achieve better coverage (at least 80 per cent), ensuring universal access to banking and financial inclusion and setting up mechanisms to enable cash transfers to actually take place.