ssl-cct - country presentation_india
DESCRIPTION
South-South Learning on Conditional Cash Transfers - Session V-A: Governance IssuesTRANSCRIPT
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Direct Benefits Transfer(DBT) Rollout
for 26 schemes in 43 districts
In India
Smt.Surekha Shahu
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A. Name of the program: Direct Benefit Transfer
B. Year program started: 2012-13 ( from 1.1.2013)
C. Number of beneficiary households : 1.66 millions for
43 districts
D. Yearly budget: arranged by participating Ministries
E. Objectives:
Ensuring better and more timely delivery of
benefits to the people.
Reducing corruption and administrative costs.
Program Summary
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F. Beneficiary target group: Intended beneficiary
could be a student, a pensioner, a widow, an
elderly person, a disabled person, a poor
family.
G. Institution responsible for implementing the
program: PMO, Planning commission, 8
Central Ministries and State Governments,
districts, UIDAI.
H. Launched: On January 1, 2013 in 20 districts
of 16 States in India
Program Summary Continues…
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Monetary Benefit For A Specific Purpose
Or Use – Scholarships
Direct income support – Pension,
unemployment allowance and wages.
Direct Subsidy
Why Direct Benefits Transfer
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Short Term Advantages
Accurate Targeting.
De-duplication.
Reduction of Fraud and corruption.
Process Re-engineering of Schemes for
simpler flow of information and funds.
Greater Accountability.
Eliminates wastes in subsidy.
Why Direct Benefits Transfer …..
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Long Term Advantages
Consolidate Cash Transfers to Households which are getting
benefits from multiple sources and multiple forms
Improves efficiency of Social safety net, consolidated income
support programme for the poor and eliminate multiple sources
of subsidy.
Positive Institutional Externalities Adoption of cutting edge
technical system.
Frees administrative system from exercise of control to focus on
development Maximise benefits from expenditure of welfare
schemes which leads to overall human development.
Why Direct Benefits Transfer….
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ARCHITECHTURE
National Committee
Executive Committee
IC IC IC IC TC FIC
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26 Schemes were selected
15 Central Sector (CS),
11 Centrally Sponsored Schemes (CSS)
Schemes were selected on the basis of
Beneficiaries with Bank Accounts
Flow of Funds is relatively simpler.
43 districts were identified
Based on higher Aadhaar Enrolment figures
Presence of Banks
Criteria for Selection
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Sl. No Ministry/ Department No. of
Schemes CS/ CSS Name of the Scheme
1 M/o Social Justice & Empowerment
7 1 CSS Post Matric Scholarship for SC Students.
2 CSS Pre-Matric Scholarship for SC Students.
3 CSS Pre-Matric Scholarship for Children of those engaged in unclean occupations.
4 CS Upgradation of merit of SC Students.
5 CS National Overseas Scholarship Schemes for SC Students.
6 CSS Post Matric Scholarship for OBCs.
7 CS Top Class Education Scheme.
2 M/o Human Resources Development, D/o Higher Education
3 1 CS Scholarship to Universities/College Students.
2 CS Fellowship Schemes of UGC.
3 CS Fellowship Schemes of AICTE.
3 M/o Human Resources Development, D/o School Education & Literacy*
2
1 CS National Means cum Merit Scholarship.
2 CS National Scheme for Incentive for the girl child for secondary education.
4 M/o Tribal Affairs 3 1 CSS Post Matric Scholarship Scheme for ST
2 CS Top Class Education System.
3 CS Rajiv Gandhi National Fellowship.
Schemes Selected for DBT
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5 M/o Minority Affairs 3 1 CSS Matric Scholarship Scheme.
2 CS Maulana Azad National Fellowship.
3 CSS Merit cum Means Scholarship Scheme.
6 M/o Women and Child Development
2 1 CSS Indira Gandhi Matritva Sahyog Yojana (IGMSY).
2 CS Dhanalakshmi Scheme.
7 M/o Health & Family Welfare
1 1 CSS Janani Suraksha Yojana.
8 M/o Labour and Employment
5 1 CS Scholarship to the Children of beedi workers.
2 CS Housing subsidy to beedi workers.
3 CSS Stipend to children in the special schools under the Child Labour Project.
4 CS Stipend to trainees under the Scheme of Welfare of SC/ST job seekers through Coaching, Guidance and Vocational Training.
5 CSS Payment of stipend to trainees under the Scheme of Skill Development in 34 Districts affected by Left Wing Extremism (LWE).
Total 26
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To Commence soon.
In district of Mysore (pilot has been
successfully run).
It concerns only 3 oil companies.
Will cover about 5 lakh beneficiary
District Mysore >80% Aadhaar
Enrolment.
40-50% seeding of database completed.
Bank-linkage still a Challenge.
Direct Benefits Transfer roll out for LPG
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Direct Benefits Transfer roll out for
Mahatma Gandhi National Rural
Employment Guarantee Scheme
(MGNREGS)
On the basis of successfully piloted in five
States viz. Gujarat, Karnataka, Orissa,
Tripura and Rajasthan
DBT will be implemented in 46 Rural
Districts out of 51 Districts identified from
1.6.2013 (Proposed)
This will be further scaled up to include the
whole country
This will reduce delays in payment and
result in better management of the scheme
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Financial / Work Flow of DCT
No
CPSMS
Yes
No
No
No
Yes
CPSMS
Beneficiary list
Is digitized?
Digitized data in standard format
M/o E&IT
(1 week)
Resident has Aadhar no.?
Enrolment stations (20
days)
Beneficiary has bank a/c
Open Bank A/c
Seed Aadhar in Bank CBS
Payment Disbursement
Authority Create APB File Sponsor Bank
Aadhar
Payment Bridge
Credit
Beneficiary
Bank A/c
Withdrawal
using Aadhar
Authentication
Seed Aadhar
No/ EID No. in
Gov database (SRDH)
1 month
Release of
funds by Central
Ministries
State Govts/
Autonomous -
Bodies.
Sub -
State level
Beneficiaries
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Govt. Department prepares an electronic file containing Aadhaar no and amount
Govt. Department sends the file to the bank where scheme account is maintained
Bank sends to Aadhaar Payments Bridge (APB) (owned and operated by NPCI) – for inter-bank entries only
APB routes money to the concerned banks. Banks credit the money in beneficiaries’ accounts
Department can send SMS informing the beneficiary about the money being sent. Banks can also send when the money arrives in the accounts
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NPCI’s role in Aadhaar Payments Bridge
(APB):
NPCI owns and maintains the APB which
brings about seamless transfer of EBT from
Government Departments to Aadhar
enabled Bank Account (AEBA) of the
individual beneficiary.
Maintains Central Mapper-helps in
identifying the banks and routing the money
accordingly.
Role of NPCI
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NPCI’s role in Aadhaar Enabled Payment System:
acts as the Authentification Service Agency (ASA) by
directly connecting to UIDAI for the same so as to
enable extension of Aadhaar Enabled Payment
Services.
ensures enriched MIS to the participants.
ensures secure Clearing and Settlement of inter-
bank transactions.
Challenge
Who pays for the transaction cost?
Contd…..
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Aadhaar-enabled Payment Systems
(AEPS)
Beneficiary approaches a BC of any Bank with her Aadhaar number
BC feeds the Aadhaar number, fingerprints and amount in the micro-ATM
Aadhaar server authenticates the ID of the resident.
After successful Aadhaar authentication, beneficiary can carry out the transaction
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26 PSU Banks
12 RRBs
Few Private Banks and Cooperative Banks which are on CBS.
Banks on Board
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Context in which the Concept emerged:
Major share of bank branches are located in urban and semi-urban areas.
Rural banking coverage is not only inadequate, it has been dwindling in the recent years.
In this context, came out with the Banking Correspondent (BC) Guidelines in 2006.
BCs are expected to bridge the gap between banking infrastructure and customers and bring about financial inclusion.
Engagement with Business Correspondents
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Advantages of BCs:
Reach-Presence right in the village
Process-Paperless
Technology enabled infrastructure-With the
help of Micro-ATMS, BCs can provide real
time authentication of beneficiary details
speeding up the process of withdrawal.
Contd……..
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Who can be BCs: Anybody with a Micro ATM can
become a BC. Any Individual, Asha, anganwadi worker,
teacher, kirana store, SHG, PDS shop, fertilizer shops,
CSC, Petrol Pump, Post Office etc can become a BC.
This opens a window of immense employment
opportunities for the unemployed and additional income
for the gainfully employed.
Leveraging BC Capabilities: With adequate training by
UIDAI, the field capabilities - enrollment, seeding etc. and
technology capabilities-seeding, AEPS, Monitoring etc. of
BCs can be leveraged
Major Challenge: Who pays for the Micro ATMs/ BCs
Contd……..
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OM#1- Digitization of Database
OM#2- Seeding of Digitized Database and Bank
Accounts
OM#3- Payment Advice
OM#4- Guidelines for LPG (Proposed)
OM#5- Monitoring and Accounting through CPSMS
OM#6- Application for facilitating implementation of
DBT
OM#7- Inclusion Bank Account Number in the
Payment Advice extended till 30.9.2013
Guidelines for DBT
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Since Enrolment for Aadhaar, Generation of UID,
Seeding of Aadhaar with Bank Accounts will take
time.
In the interim, no transfer would be withheld for
want of Aadhaar.
Process of electronic transfer along with transfer
through APB to continue till 31.3.13.
Ministries to decide switchover dates for each
scheme after which transfers only through APB.
Contd….
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Lack of trained and skillful employees.
Delay due to issuance in Aadhar
Cards.
Resistance to adopt new processes
and technology.
Lack of flow of information.
Issues on Governance
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Aadhaar enabled DBT would:
Eliminate the possibility of identity
fraud,
Better delivery of public services,
More transparent
Rationalize administrative expenses,
More effective governance.
Issues on Governance
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Reduction in number of layers of
approval.
Reduction in delays of providing the
benefits.
Ensuring the removal of middleman.
Ensuring that the benefit is reaching to
the target group.
Conclusions- Innovations on
Governance
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Studies have revealed that there are instances
where benefits under government schemes are
not reaching to the intended beneficiaries in time
and in full amount.
The Aadhaar enabled Direct Benefit Transfer
mechanism is a most effective tool to ensure
transparency, accountability and percolation of
benefits to the intended beneficiaries.
Conclusions- Innovations on
Governance
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Review of Rollout of DBT
Data on DBT as on 31st March 2013
1.Beneficiaries: The total number of beneficiaries under
these schemes in 43 districts is 16,65,771.
2.Opening of Bank Accounts: The total number of
Beneficiaries with bank accounts is 12,92,191 now. The
coverage with bank accounts has risen to 77.5%.
3.Beneficiaries with both Bank account and Aadhaar
numbers: This number id 5,36,934 which is 32.2% of the total
number of beneficiary base
4.Bank accounts seeded with Aadhaar numbers: This
figure, as reported is just 69,934 which is only 4.1%
5.Data on this is quite incomplete with departments relying
largely on secondary information to estimate the extent of
seeding
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Roll out of Phase-II – DBT from
1.7.2013 in 78 Districts All the Identified 26 Schemes have been
selected
15 Central Sector (CS),
11 Centrally Sponsored Schemes (CSS)
Schemes were selected on the basis of
Beneficiaries with Bank Accounts
Flow of Funds is relatively simpler.
78 additional districts have been identified in 26 States/UTs
Based on higher Aadhaar Enrolment figures
Presence of Banks
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Thank you
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APB – Technical architecture Funds Disbursement / Credit Architecture