• Page last updated on: 07 March 2019
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DIRECT BENEFIT TRANSFER (DBT)

National Food Security Act (2013) provides for reforms in the TPDS including schemes such as Cash transfers for provisioning of food entitlements. In pursuance of enabling provisions under section 12 of NFSA for cash transfer, Govt. notified ‘Cash Transfer of Food Subsidy Rule, 2015’ in Aug 2015. The DBT experiment aims to (i) reduce the need for huge physical movement of foodgrains (ii) provide greater autonomy to beneficiaries to choose their consumption basket (iii) enhance dietary diversity (iv) reduce leakages (v) facilitate better targeting (vi) promote financial inclusionDirect Cash Transfer in food was started in UTs of Chandigarh and Puducherry from the month of September, 2015 and part of Dadra & Nagar Haveli from March, 2016. In these UTs, NFSA is being implemented in cash transfer mode under which cash equivalent of subsidy is being transferred directly into the Bank accounts of eligible households to enable them to purchase foodgrains from open market. The Scheme is optional for States/UTs and operates in "Identified areas” in a State or Union territory or any specified area within the State or Union territory for which there is a written consent of the State Government for implementation of the Scheme. Prevailing system of distribution of food grains through Public Distribution System may continue in the remaining areas not covered under the Scheme.