Direct Benefit Transfer (DBT) Implementation: Enhancing Governance & Service Delivery

1. DBT MissionCabinet Secretariat Direct Benefit Transfer – Overview and Progress 6th March, 2019

2. Direct Benefits Transfer (DBT) D Direct – to targeted identified beneficiary B Benefits: Cash (subsidy, pensions, stipends etc) and In-kind (Distribution of subsidized or free food, fertilizer, medicines etc) T Transfers – Electronic; Authentication-based DBT is a significant governance reform to improve public service delivery by ensuring efficient, transparent and targeted delivery of government subsidies, benefits and services.

3. Objectives of DBT • Create transparency in benefit transfers to beneficiaries • Accurate identification & targeting of beneficiaries • Ensure greater inclusion and ease of availing services • Curb leakages in the benefit delivery processes • Curbs ‘Rent Seeking’ – elimination of middlemen/agents • Create greater accountability on behalf of the Government • Facilitating reforms in Government processes through re-engineering • Increase efficiency in scheme delivery processes • Ensure effectiveness of schemes through timely implementation

4. DBT Ecosystem Financial Service Providers Resident Data Hubs Telecom Service Providers ePoS Micro ATMs Service Enablers Mobile Wallets Implementation Agencies ATM Post Offices Scheme Specific Interventions CSC Regulators Last mile Preparedness Central Government State Government

5. Key DBT Enablers • Aadhaar as unique identifier • Aadhaar enables targeted beneficiary identification through authentication and de-duplication • Also acts as financial address and facilitates seamless financial transaction • Banking Facilities • Banking Facilities enable Cash-In & Cash-Out points for beneficiaries through brick & mortar branch networks and other mechanisms such as business correspondents, Micro ATMs, ePOS, Payment Banks etc. • Network Infrastructure • Enabled IT systems for effective implementation and monitoring of DBT • Good quality & reliable network connectivity is a pre-requisitefor DBT transactions

6. DBT process Note: DBT is considered as electronic payments in case of cash schemes and Aadhaar-authenticated expenditure in case of in-kind schemes • Assessment of Schemes for DBT applicability • Beneficiary Digitization through Scheme Management System • Beneficiary Registration, de-duplication using Aadhaar authentication • Electronic Fund Transfers directly to beneficiaries' bank account and Digital Identity linked beneficiary bank account (for cash-based schemes) • Beneficiary Authentication at time of benefit transfer • Calculating monthly Government expenditure (preferably per beneficiary expenditure) in providing in-kind benefit • Respects diversity of large & complex IT System through data-exchange frameworks

7. Monthly Reporting Formats for Centrally Sponsored In Kind Schemes (1/2) I. Beneficiary Details II. Expenditure Incurred

8. Monthly Reporting Formats for Centrally Sponsored In Kind Schemes (2/2) III. In Kind Transactions IV. Savings

9. DBT Flow: Payments and Transfer Enabling Electronic Payments Enabling Authenticated In-kind Transfers

10. Use of Aadhaar in DBT • Supreme Court has upheld the Section 7 of the Aadhaar Act, 2016 (The Central Government or, as the case may be, the State Government may, for the purpose of establishing identity of an individual as a condition for receipt of a subsidy, benefit or service for which the expenditure is incurred from, or the receipt therefrom forms part of, the Consolidated Fund of India, require that such individual undergo authentication, or furnish proof of possession of Aadhaar number…) • Central Ministry/ Department to issue notification for use of Aadhaar in Centrally Sponsored and Central Sector Schemes (Notification of Nation AYUSH Mission issued on 31.03.2017) • Exception handling guidelines circulated by UIDAI and DBT Mission (reiterated by Hon’ble Supreme Court) should be adhered to: • Aadhaar as a preferred mode of identification – provision for alternate identification till the time beneficiary’s enrolment for Aadhaar is pending • No beneficiary to be denied benefits for want of Aadhaar • List of beneficiaries availing benefits without Aadhaar to be maintained and reviewed separately. Efforts to be made to capture Aadhaar number of these beneficiaries

11. Modes of Authentication Authentication required because not every 12 digit number is Aadhaar ~1.23 billion Aadhaar numbers assigned so far (Aadhaar Saturation in >18 yrs. : >99%) • Biometric Authentication • Beneficiary Aadhaar no. and Biometrics matched with information in UIDAI CIDR • Provides for real-time on-field authentication of beneficiary • Demographic Authentication • Beneficiary’s personal data (name, date of birth, gender, address) matched with UIDAI CIDR using beneficiary’s Aadhaar number • Allows for centralized authentication i.e. without physical presence of beneficiary • One-Time-Password (OTP) based Authentication • OTP sent to beneficiary’s registered mobile no. and/ or e-mail address registered with UIDAI • Allows for real time on-field authentication of beneficiary

12. Compliance with Standards • Migrate old systems to adopt Local Government Directory and new systems to be developed based on LGD compliance • For cash schemes, use of DBT Scheme Code (Unique scheme codes for all DBT schemes implemented in Ministries/Departments and States/UTs) for beneficiary payment transactions • Compliance to Data & Meta Data Standards published by MeitY • Compliance to UIDAISecurity Standards for storing of Aadhaar numbers; Integration with UIDAI for Demographic, OTP-based and/or Biometric Authentication should allow for authentications services using Virtual ID • Compliance to Cyber security protocols / standards, Data privacy • Compliance to Government of India website guidelines

13. DBT Journey so far.. 24 Schemes 121 Districts All Central Schemes All Districts Launch of DBT Bharat Portal 439 Schemes on-boarded on DBT Bharat Portal DBT Scope Expansion Cash, In-kind, Service enablers 34 Schemes All Districts Jan, 2013 Dec, 2014 Feb, 2015 Mar, 2016 5th Mar, 2019 Aug, 2016

14. DBT Implementation – Present Status • Central Level • DBT Cells (Nodal for DBT) created in 75Ministries/Departments • 439 schemes of 55 Ministries on-boarded • 227 Schemes notified under Section 7 of the Aadhaar Act to use Aadhaar in welfare schemes • Rs. 6,31,625 Cr Transferred under DBT (cumulative since inception) • ~127.3 Cr Beneficiaries under DBT • Rs. 1,09,983 Cr Estimated Gains due to DBT (Cumulative since inception) DBT Outreach – YoY • State Level • DBT Cells (Nodal for DBT) created across State/ UTs • 16 States have notified Aadhaar Act to use Aadhaar in all welfare schemes and services implemented in the State • AllState/UT DBT Portals are Live (except West Bengal) • 27State/UT DBT Portals are Integrated with DBT Bharat Portal • Approx. 3,466 schemes listed by States/UT on DBT Bharat portal [2,062 schemes are Centrally Sponsored Schemes and 1,404 are State schemes] Note: Information as on 5th March, 2019

15. Cumulative Fund transferred through DBT (in Rs. Cr) Cumulative Fund Transfer (Cash Schemes) Cumulative Expenditure (In-kind Schemes) 2018-19 (till 5th Mar ‘19) 2017-18 Note: In-kind schemes were introduced in 2017-18; Information as on 5th March, 2019

16. National AYUSH Mission : Way Forward • Scheme management system has been developed for National AYUSH Mission • Login ids for data entry to be generated at the hospital / facility level or at district level • Digitized beneficiary database to be prepared to ensure rightful targeting • Scheme portal to allow for Aadhaar seeding and authentication of beneficiaries (including through VID) • UIDAI’s guidelines with respect to storing of Aadhaar numbers to be adhered to • Exception handling guidelines of DBT Mission & UIDAI to be followed so that no beneficiary is denied benefits for want of Aadhaar. Detailed exception handling guidelines for the field functionaries and officials to be issued, if required • Infrastructure to ensure last-mile delivery of benefits: Strengthening of physical infrastructure for registration and authentication of beneficiaries • Efforts may be made to ensure that data on expenditure and disbursal of medicines is maintained at the level of hospital / facility • Flow of DBT data between Scheme management system, DBT Bharat portal and State/UT DBT portals every month through web-services

17. Thank You