Defined Benefit Plan Advantages. Accordingly, the scope of DBT covers the following categories of schemes. For more Information on Direct Transfer Mission, Click here. Example PAHAL, MGNREGA, NSAP etc. The strong presence of BCs will ensure that payments are disbursed to the beneficiaries on time, at their doorstep and of full value. The initiative is PAHAL—the direct benefit transfer scheme for liquefied petroleum gas (LPG). QROPS & tax efficiency. Since Aadhaar provides unique identity and is useful in targeting the intended beneficiaries, Aadhaar is preferred and beneficiaries are encouraged to have Aadhaar. InDG is a Ministry of Electronics and Information Technology (MeitY) Government of India initiative and is executed by Centre for Development of Advanced Computing, Hyderabad. Please leave all source links intact and adhere to applicable copyright and intellectual property guidelines and laws. (Q) Should PDS scheme be replaced by Direct benefit transfer in Food Subsidy. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a new income support scheme announced by the Union government. To give more impetus, DBT Mission and matters related thereto has been placed in Cabinet Secretariat under Secretary (Co-ordination & PG) w.e.f. Direct Benefit Transfer (DBT) Scheme – Pros and Cons | 1 www.GroupDiscussionIdeas.com Background :-Direct Benefit Transfer (DBT) Scheme’s aim is to transfer subsides, scholarships and other welfare benefits directly to the bank accounts of beneficiaries. With the aim of reforming Government delivery system by re-engineering the existing process in welfare schemes for simpler and faster flow of information/funds and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud Direct Benefit Transfer (DBT) was started on 1st January, 2013. Enumerate. This portal has been developed as part of the national level initiative - India Development Gateway (InDG), dedicated for providing information / knowledge and ICT based knowledge products and services in the domain of social development. Direct Benefit Transfer (DBT) Scheme’s aim is to transfer subsides, scholarships and other welfare benefits directly to the bank accounts of beneficiaries. The programme has already been universalised since February 2015. It was launched on 1st January 2013. BC is presently authorised to offer services such as cash transactions where the bank does not have a branch. And these values really have shot up. Topic: Issues related to direct and indirect farm subsidies 6) Discuss the merits, challenges and future prospects of direct benefit transfer (DBT) in fertilizers. 7 new scholarship schemes and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was brought under DBT in 300 identified districts with higher Aadhaar enrolment. Public and private pension plans are defined benefits. It may be called an e-check in the United States, a bank transfer in the UK, or a giro transfer in Europe. These provide a unique opportunity to implement DBT in all welfare schemes across country including States & UTs. As on April, 2017, DBT onboarded schemes are 135 from 25 Ministries/Departments. The pros and cons of subsidies through direct benefit transfer 7 min read. This will revolutionise the drive for financial inclusion. This Framework is to be followed by all Ministries/ Departments and their attached Institutions/PSUs and is applicable on all Central Sector (CS)/ Centrally Sponsored Schemes (CSS) and for all schemes where components of cash is transferred to individual beneficiaries. What defined benefit packages have in common is the longevity requirement and the fact that the employer contributes everything. © 2006–2019 C–DAC.All content appearing on the vikaspedia portal is through collaborative effort of vikaspedia and its partners.We encourage you to use and share the content in a respectful and fair manner. Replacing PDS with cash transfers would, in effect, gradually erode and eventually dismantle this obligation of the government, with an adverse impact on an already precarious agriculture and farmer protection. Leave a comment There is a need to develop a comprehensive eco-system for carrying out cashless transactions over mobile platform using Aadhaar as identifiers. (250 Words) The Hindu Why this question? 14.9.2015. Pros and cons of TRAIN. DBT Mission was created in the Planning Commission to act as the nodal point for the implementation of the DBT programmes. The JAM Trinity will enable this novel system to transfer benefits in a leakage-proof, well targeted, cashless and timely manner. Direct deposits, ATM transfers, direct debits by a cashier, and instant payments all qualify as an EFT. Topic: Issues related to direct and indirect farm subsidies. The success of an ambitious and a highly desirable initiative like DBT depends on a set of a few critical factors. This is different from a defined contribution plan such as the 401k in which an individual makes specific contributions to the plan and the amount of benefits in the future are unknown. With payments banks, RBI seeks to increase the penetration level of financial services in the remote areas of the country. Ministry of Electronics and Information Technology (MeitY). Centre for Development of Advanced Computing, Hyderabad. Give Pros and cons. With the rapid rollout of Aadhaar in the country, it was felt possible to move to a system of transferring cash benefits directly to the poor. These include PAHAL (modified DBTL for LPG subsidy), Public Distribution System (PDS) in Puducherry, Chandigarh and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) payments in Jharkhand, Bihar, etc. Advocates and opponents of TRAIN point out the following potential benefits and negative impacts of the program: Potential benefits: Higher take-home pay and therefore improved spending power, particularly for those earning P40,000 a month or less Better income rate after taxes for corporations; More efficient tax collection Jan Dhan, Aadhaar and Mobile are DBT enablers. Last June that pension saver could get £210,000 as a transfer value – today that has rocketed to £241,000. Electronic Payment Framework was laid down vide O.M. Should fertilisers subsidy be directly transferred to the farmer’s bank account? DBT was further expanded across the country on 12.12.2014. Replacing PDS with cash transfers would, in effect, gradually erode and eventually dismantle this obligation of the government, with an adverse impact on an already precarious agriculture and farmer protection. Leave a comment Business Correspondents/ Bank Mitras will have a vital role in operationalising the programme and ensuring the last mile connectivity. dated 13.2.2015 and 19.2.2015. Posted on August 20, 2017 August 20, 2017 by IAS Posted in Governance, Political Science, polity, Social Justice Tagged Benefits of DBT, DBT, Direct Benefit Transfer, Ethics, exams, governance Indian Polity, IAS, India, PAHAL scheme, Pros and Cons of DBT, Social Justice, Transparency, upsc. A defined benefit pension plan is a pension plan that will provide a retiree with a specific amount of retirement benefits based on the number of years of service that they have provided their company.