Direct Cash Transfer (DCT) Scheme in India

Direct Cash Transfer (DCT) Scheme 

What is this Scheme? 
Last year the Prime Minister Manmohan Singh announced Direct Cash Transfer (DCT) Scheme. According to this scheme the amount of subsidy payable to poor will be transferred to their respective accounts through 'Aadhar Card'. In its first step, the scheme will begin in 51 districts from 1 January, 2013. On 1 April, 2013 it will be started in 18 states of the country. This scheme will be launched from 1 April, 2014 in other states.

Benefits of the scheme 
The government tends to check the corruption and misuse of the articles available on subsidy. It will help the government to reach the poor directly. Under existing system, the ration shopkeepers sell out grains and kerosene in open market, hence the poor are deprived of its benefits. This system will also put an end to middle man 

Procedure of Scheme 
Through ‘Aadhar Card’ the amount of subsidy will go in peoples account. All the benefits pertains to welfare schemes, LPG, Kerosene, pension, scholarship would directly go to beneficiaries. They would use the money as per their convenience and requirement.

Doubts in Scheme 
The question has cropped up that the money so deposited will not be used for the need it is being paid for. Some may misuse it.

Drawbacks of Scheme 
Through this scheme, the facility of Direct Cash Transfer is provided to Aadhar Card holder only. Where as, only 21 crore people out of 120 crore are ‘Aadhar Card’ holder, as per current position.

Secondly most of the BPL Card holders have no bank account. Some villages do not have any bank or branch.  

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