Chidambaram says direct cash transfer system a `sleight of hand’

The central government's plan to route all subsidies, including food subsidies to the poor, in cash through banks rather than in kind through the public distribution system, is pure magic -- like a sleight of the hand.

The onus of implementation of the scheme is on the banks and the scheme does away with the cumbersome task of ensuring that the foodgrains moving out of FCI godowns reach the ultimate consumer, finance minister  Chidambaram pointed out.

"Through this unique benefit transfer scheme, money when it is released will instantaneously be credited in the bank account of the beneficiary, leaving no scope for corruption and pilferage. That is why I describe it a pure magic," Chidambaram told a function here.

"We will roll out the scheme from 1 January in some districts with some schemes but by the end of the year, we hope to cover all the districts and all the schemes," he said.

He exhorted banks to prepare themselves to take up the onerous task of distributing cash among the `Aadhar-enabled' urban and rural poor in the country and make the scheme a success.

"It is a bigger responsibility that rests on bankers. I appeal to all banks to work with the government to make the revolutionary scheme a success," he said.