PM unveils direct cash transfer scheme
New Delhi: In an ambitious policy initiative that could prove to be a game-changer for UPA-II, Prime Minister Manmohan Singh late on Monday announced the direct cash payout of subsidies to beneficiaries from January 1, 2013.
The subsidy amount would be transferred to beneficiaries' bank accounts linked to Aadhaar cards. The scheme is expected to cut down waste and corruption in distribution of subsidised items, the prime minister said, chairing the first meeting of the National Committee on Direct Transfers.
He asked all ministries "to work in right earnest" for implementation of this pioneering initiative and also exhorted the departments to work in close coordination to enable poor people to open bank accounts smoothly.
Initially, the government will implement the scheme for cash transfer to the beneficiaries' accounts in 51 districts from January 1, 2013. The scheme will be worked in 18 states from April and in the rest of the country later in 2013, the prime minister said. The scheme will be operationalised by leveraging the Aadhaar platform.
RBI Chief Raghuram Rajan stated that more economic data is needed to be confident that economic growth is picking up, although he added that the benefits to exports from the Rupee's fall is yet to kick in.
Date 19 hrs ago, Duration 2:19, Views 26