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Cash transfer scheme


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Cash transfer scheme UPA II, Aadhaar & implementation in India

Published in: Economy & Finance, Business
  • Dear Arun Khedwal ji, Good day.
    Please help me know whom to e mail, in DCT scheme , when Gas cylinder Subsidy is not receved.
    At Bank end i submitted AAdhar & is been linked.
    At Bharat gas too Aadhaar is linked, Their system is also showing.
    But they say It Is DCT to transfer cash to ur Bank account.
    So how to correspond with DCT,
    My consumer No 35923 SARALA LODHA,
    Secunderabad , A.p.
    My Banker Is SBH, West Marredpally,
    Please help me with email id of personnel to be contacted in DCT Office.
    , With any land line, mobile number .
    Are you sure you want to  Yes  No
    Your message goes here

Cash transfer scheme

  1. 1. Cash Transfer Scheme “Aapka paisa aapke haath" Team : 1. Ashok Hegde 2. Arun Khedwal members 3. Rutuja Dighe 4. Sanjeev Shrivastva Group : I Batch : XMBA-25 Professor : Anand Shringarpure Institute : ITM, Vashi
  2. 2. Agenda • Executive Summary • What is Cash Transfer Scheme ? • Why Cash Transfer Scheme? • How is it being implemented? • What is Aadhaar Card? • What are the challenges ? • SWOT Analysis • Report Card • Suggestion’s • Conclusion • Video
  3. 3. Executive Summary Money Transfer How When Why Challenges  BPL(below poverty line) families would get ₹30,000 to ₹40,000 per year. APL (above poverty line) will get the Cooking gas subsidy.  In all ₹4,00,000 Crore will be distributed in a year  Families with Aadhar card will get money directly in their bank a/c’s  New bank a/c’s will be opened; Expansion of banks in rural area.  In 51 districts the scheme was launched from January 2013 with a target to cover the entire nation by April 2014.  To check the leakages from the system & eliminate middle man from the system.  Ahead of 2014 elections, it is seen as big political thrust  Only 400 million Aadhaars issued till date, which leaves 800 million numbers to be issued before April 2014 which seems to be a tall task.  About 188,000 villages had banking connectivity in June 2012 whereas India has 700,000 villages
  4. 4. What is direct cash transfer in India? • It is the scheme to reach out to poor people directly in order to plug leakages and cut delays in transfer of subsidies to the poor. • The areas that would be covered by the program include scholarships, pensions and unemployment allowances and later MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act ) and Public Distribution Schemes. • Electronic cash transfer system would improve targeting, reduce corruption, control expenditure, eliminate waste and facilitate reforms. • The programme is inspired by such successful schemes existing in countries like Brazil and Mexico and cities like New York and Washington
  5. 5. Why direct cash transfer?  Government spends ₹3.65for transferring ₹1to the poor  Public Distribution System (PDS) is so ineffective that 58% of the subsidized grains do not reach the targeted group  Leakages and corruption have made many schemes dysfunctional.  Efficiency and effectiveness have not been achieved by any of the government programs and schemes optimally  To generate budget savings and reduce corruption  Direct cash transfer scheme aims to reduce leakages, cut down corruption, eliminate middlemen, target beneficiaries better and speed up transfer of benefits to eligible individuals  Ahead of 2014 elections, it is seen as big political thrust
  6. 6. How is it being implemented? Government Welfare Fund Micro ATM Authentication Beneficiary Receive the Money Transfer money to Beneficiary's A/C’s Withdrawal through ATMs,debit cards and through the business correspondent
  7. 7.  Unique Identification Authority of India (UIDAI)  Aadhaar card, consisting a 12 digit number is issued for every individual, including infants. Each individual of a family will have separate Aadhaar UID number.  As on 20th August 2013 total 40,55,78,856 Aadhaar cards issued  Aadhaar is potentially useful for reducing leakages in a large number of government programmes
  8. 8. Benefits of Aadhaar  Aadhaar will become the single source of identity verification  Supporting identity documents for obtaining a bank account, passport, driving license and so on.  Aadhaar card consists of all the information including address, photo, PAN card number, license details, Voter ID, ration card we can remove all the cards  Government can transfer the benefit amount directly to the bank account of the beneficiaries to which their Aadhaar card is linked  Criminal acts : If we get the fingerprints of the criminal, we can try to match them with the database and easily catch the culprit. Identity Verification One card for all Government Benefits
  9. 9. Aadhaar’s Errors
  10. 10. What are the challenges ?  About 188,000 villages had banking connectivity in June 2013 whereas India has 700,000 villages  The private-owned banks have been reluctant towards providing services in the rural areas  The government owned banks are in rural areas but the branches available are already working over capacity  Only 400 million Aadhaars issued till date, which leaves 800 million numbers to be issued before April 2014 which seems to be a tall task.  Errors in Aadhaar cards  Bridging the Aadhaar card with bank a/c’s  If the male member receives cash from the government on behalf of the family; it is most likely that due to illiteracy and scarcity of civic sense, he will spend the cash on liquor, gambling and other things which will in turn harm the family.  The ground realities like several gaps in infrastructure, shortage of energy, IT infrastructure, technicians and the involvement of private banks has forced the government to reduce its initial target from 51 districts Other Challenges Aadhaar Cards Banking System in rural area
  11. 11. SWOT Analysis Strength  World's largest cash transfer programme  Cut down on corruption  Subsidies under various schemes account for nearly 3.5 percent GDP.  Cost effective way Weaknesses  Banking system has less penetration in rural parts  Aadhaar card given to only 400 million out of 1,200 Million  Faulty Aadhaar cards  Bridging Aadhaar card with bank A/C’s Opportunities  Population 1.27 Billion  Expansion of Banking System in rural area  Corruption free scheme  Save huge amount of money Threats  New government new plans  New government may drop the project on any reason  Technology misuses  Money transfer to incorrect A/C’s  Frauds
  12. 12. Report Card
  13. 13. Suggestion’s  We believe that the infrastructure must be built before starting a scheme and not vice-versa  Identification of beneficiaries:- Selection criteria should be kept broad-based and inclusive. Lessons can be learnt from the successful implementation of Brazil’s Bolsa Família Program  The amount of subsidy should be calculated based on the number of individuals per household rather than assuming an average household size  It would be better if it is thoroughly meant for women, as they are responsible for the household needs such as food, health, education, kerosene, LPG etc.
  14. 14. Conclusion  The new system is expected to reduce this cost and subsidy bill through better targeting  If the entire system is managed through efficient targeting, disbursement and regular monitoring of the disbursed funds this can result into transforming the rural India.  The real success of the policy lies in the accuracy and efficiency in identification of worthy beneficiaries, i.e. BPL Households.
  15. 15. Thanks