New Delhi: The Finance Ministry on Sunday said that the Department of Expenditure has been improving the Direct Benefit Transfer or DBT relationship between beneficiaries and on-boarding to make it easier to interact with external systems. As part of its review for the year 2024, DBT through Public Financial Management System (PFMS) supports Digital India by enabling electronic payments and receipts for all Ministries and Departments, both Central and State.
In a social media post, the ministry also said that the Information Technology (IT)-based Public Financial Management System (PFMS) will directly and significantly contribute to the government’s Digital India initiative, enabling direct benefit transfer for enrolled beneficiaries. in various schemes under Ministries/Departments of Govt. “DBT through PFMS aims to achieve full tracking of funds from release to credit and ‘timely’ transfer of funds to the bank accounts of the intended recipients,” the ministry said.
Almost all Centrally Sponsored Schemes (CSS) and Central Sector Schemes (CS) are in PFMS and all major banks including Reserve Bank of India (RBI) interface with PFMS. These transfers through DBT are part of various welfare schemes that ensure government assistance reaches the people without middlemen or leakages.
Emphasizing that India has achieved great success in delivering direct welfare benefits to people through digital systems, in early October, Finance Minister Nirmala Sitharaman highlighted that more than $450 billion has been transferred to people through Direct Benefit Transfer (DBT). Last 8 years. “More than 51 Ministries and Departments of the Central Government contract with DBT. During this period, about 40 billion dollars have been saved from looting,” said the minister.
The finance minister also credited the elimination of ghost accounts and fraudulent transactions for these savings, stressing the importance of accountability in handling taxpayers’ money. “This digital initiative is a ‘best lesson’ to improve transparency and efficiency. The government’s efforts have ensured proper accounting of every rupee, thereby preventing misuse and increasing responsible use of public funds,” she said.
The DBT system introduced by the central government is widely recognized as a powerful tool to channel subsidies, pensions, scholarships and other benefits directly to beneficiaries’ bank accounts, reducing delays and cutting out middlemen.