Direct cash transfer pilots ride to success on Aadhaar
Consider this: Beneficiaries of the public distribution system in Kakinada in Andhra Pradesh buy their ration supplies using the Aadhaar Online Authentication System. Same is the case in Aurangabad in Maharashtra, where scholarships and pension payments are made under the Aadhaar-Enabled Payment System. Beneficiaries get their dues after authenticating their identity through a micro-ATM device.
Jharkhand partnered the Unique Identification Authority of India (UIDAI) to undertake financial inclusion and welfare payments in a pilot project in 12 blocks of Ranchi, Hazaribagh and Saraikela-Kharsawan. So far, more than 2,223 transactions adding up to R1.8 lakh have been conducted through the Aadhaar Payment Bridge System (APBS).
“Besides convenience for the customer, there are advantages for the banks and the government. Earlier, many beneficiaries did not get their money, but now due to Aadhaar, service delivery is more timely,” said an UIDAI official.
Another success story is Jharkhand’s Ramgarh district, where the government directly transfers money to Aadhaar-linked bank accounts under MNREGS. Beneficiaries withdraw money from a micro-ATM operated by a business correspondent.
“The rollout of direct cash transfers of welfare schemes is possible and will rapidly scale up because of Aadhaar seeding,” said a Planning Commission official. Last week, the panel met representatives from 11 states and six union territories to discuss
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