Cash transfer will be a game changer for India: Chidambaram

Last Updated: Tue, Nov 27, 2012 14:10 hrs

Finance Minister P.Chidambaram on Tuesday said that the government's decision to launch the Aadhar-based direct cash transfer scheme for beneficiaries of subsidised items would be a game changer in the country.

He said that the scheme would roll out from January 1, 2013 next year, and would be initially offered in 51 districts in 15 states of the country, before being broadened to encompass the rest of the nation.

Chidambaram said the Aadhar-based direct subsidy transfer roll-out will be completed throughout India by the end of 2013, which will also include 42 new schemes.

"We want the roll out (of Aadhaar-based subsidy transfer) to be completed by the end of 2013," he said.

He said the first phase of the cash transfer of subsidy would benefit ten million households.

Under the scheme, cash transfers will be in the range of Rs.30,000 to Rs. 40,000 on a yearly basis. Overall, Rs.3,20,000 crore will be distributed.

Aadhar must be linked to bank account for scheme to work as users might not be prudent with cash management.

Chidambaram also said that there will be no leakage in the system and factors such as falsification and duplication will be eliminated.

UIDAI will set up a dedicated cell of technical experts in UIDAI to facilitate Aadhaar enabled Direct Cash Transfers and help individual ministries.

Departments will work towards digitising their databases quickly, particularly at the state level, with the help of state governments, Department of IT and NIC to ensure convergence.

Per family-per year cash transfer amount will be Rs 32,000 in the bank accounts of 10 crore poor families. However Aadhar's coverage has so far been much less even after three years since its launch.

Figures indicate that 250 million people have been enrolled so far. (ANI)

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