Keen to get States on board its ambitious cash transfer scheme, the Centre has urged them to set up Direct Benefit Transfer (DBT) cells.
“It is up to the States on how they wish to proceed and whether they want to opt for the DBT. But with more and more schemes and subsidies coming onto this platform, it will be useful for States as well,” said a senior government official.
The DBT Mission has also issued detailed guidelines on setting up such internal cells by States as well as disbursal of benefits in cash and kind.
The cells are envisaged as “one-stop” points for coordinating all efforts for bringing and implementing schemes on to DBT.
“A coordinated effort between the Centre and States will enable faster decision-making, eliminate duplication of efforts and smoothen out differences, if any, hence fostering an easier transition of schemes on to DBT,” said the guidelines, pointing out that by March 2017 all Central and Centrally-sponsored welfare and subsidy schemes will be brought on to this platform.
Apart from working in tandem with the Centre on cash transfer schemes, the DBT cells would also advise the State government on various schemes and monitor their efficacy.
At the recent Inter-state Council meeting, Prime Minister Narendra Modi too urged States to join the cash transfer platform and use Aadhaar linkages to weed out fake beneficiaries.
For disbursal of cash benefits, each State can develop its own electronic Financial Management System that should be linked to the Public Financial Management System (PFMS).
“The State has to ensure that these funds are disbursed directly to the bank or postal accounts of the beneficiaries. It is preferable that the State uses PFMS platform to track the transfer of funds to the beneficiaries' bank or postal accounts,” said the guidelines by the DBT Mission.
Using the DBT platform, more than ₹61,000 crore was transferred to over 30 crore beneficiaries in 2015-16, for schemes including the Mahatma Gandhi National Rural Employment Guarantee Act and the subsidy for cooking gas.