Role of Direct Benefit Transfer (DBT) in India’s Financial System

: DBT has been created to remove middlemen from facilities like subsidies given to citizens by the government. Reforms like Direct Benefit Transfer in the financial system of the country are being promoted all over the world.Funds are directly transferred by the banks to the bank accounts of the beneficiaries through the DBT system.Through this, beneficiaries can link their existing bank accounts and open new accountsDirect Benefit Transfer (DBT) is a social security scheme aimed at giving direct cash subsidies to people living below the poverty line. People living below the poverty line are not getting the benefit of schemes run by the government. Even today these people are struggling for their daily needs. But the main reason for this is a lack of awareness among the people. This paper examines the effects of DBT on the Indian economy and its awareness among people. Secondary sources such as Books, journals, Articles, Newspapers, Research papers, etc. have been used to obtain information.

"The process of transferring the subsidy amount directly to the beneficiaries account is known as DBT. In this context, transfer can be defined as the payment that the government makes directly to the beneficiary without receiving any return. Some examples of transfers are scholarships and subsidies." The government is encouraging other new models through policies that encourage innovation and responsible finance.
Review of literature: Joy, J. (2018)has critically evaluated the Direct Benefit Transfer Mission in India in his paper. It was concluded that when the DBT was implemented in 2013, 5.7 million beneficiaries did not have Aadhaar. This number increased to 6.38 crore in 2017. Despite the skill of DBT, India was not ready to adopt it at that time. Therefore, serious efforts should be made by the government to provide Aadhaar payment assistance to the people. Mahasweta M. Banerjee (2016) in her article claims that financial literacy and management skills are important for the well-being of the family. Found that significant research evidence is needed to make policy recommendations to address the FC of poor people in India. FC programs must now be reviewed to separate the effects of marital status, occupation, family size, gender, education, and health on financial inclusion and capabilities, longitudinal, randomized, mixed-methods. Paramasivam, Arunkumar .C (2018)in his paper studied about financial inclusion in India through major social defense schemes such as PAHAL and Direct Benefit Transfer (DBT). Social defense schemes like MGNREGA, NSAP, LPG, were highlighted.It was concluded that Digital India provides easy DBT facility for financial inclusion in digital format. DBT provides an opportunity for people to use banking and financial services to empower them financially and it reduces the middleman practice. Rajasekharam. N (2018) has suggested that Basic Savings Bank Deposit Account (BSBDA) accounts and DBT have increased significantly in the inclusion of economically excluded people. Now Aadhar card is being accepted as a legal document for opening a bank account. RBI has identified five target groups of people for financial improvement literacy levels and organized several outbound camps. No frills and Basic Service Demat Account (BDSA) were created for the poor people. S. Aman (2018) in his study, said that by expanding the DBT schemes, the Government of India has estimated to save an amount of Rs 82,985 crore. This amount is Rs 25,956 crore by removing the fake account holder as per the latest government data. This figure represents an increase of over 45 percent over Rs. 57,029 crore as of March 2017 which was mentioned by Prime Minister Narendra Modi.

Research Methodology:
The research method is partially descriptive, searchable, and inferential. This paper describes the role that DBT plays in the Indian economy. This paper is mainly based on secondary data. All information has been collected through various research paper, books, newspapers and web papers etc.

Objective:
1. To find out the impact of DBT in Indian economy 2. To find out the importance of DBT and the awareness of people about it. Various routes for this are mentioned as follows: The beneficiary can receive the amount directly. One can also receive funds from an implementing agency appointed by the government. The beneficiary can receive funds from the state or central government. o The components of the schemes themselves are part of the in-kind benefit category from the government to the beneficiaries. These types of benefits are provided to the beneficiaries by the government through intermediate agencies. The government usually purchases goods that can be delivered to the targeted beneficiaries. So that the beneficiaries can get these services at very low prices or free of cost. o Incentives, allowances, etc., are provided to non-governmental organizations (NGOs) as they provide services to other beneficiaries. Payment to the agencies associated with government schemes such as: Asha and Anganwadi workers as well as school teachers and workers will also be made through DBT. "During interactions, it was realized that the scope of the DBT can be expanded to include all welfare and subsidy schemes operated by all the ministries and departments of the Government of India directly or through implementing agencies, which involve cash or kind benefits' transfers to individuals," said an official missive from the DBT Mission.  Benefit &Progress of DBT: The government is proposing to include 500 central schemes under the DBT scheme during the coming years. The scope of DBT has also been expanded to include ASHA and Anganwadi workers etc. and it has been decided to bring all welfare and subsidy schemes of the government under it.The advantage of DBT is that the government provides funds directly to the beneficiary thereby avoiding leakage and the money is sent directly to the beneficiary's bank account.DBT also has the advantage that through this the government can better target the beneficiary. Aadhaar is a universal ID associated with DBT so that the government can identify the beneficiary from its Aadhaar statement. The government has launched a web portal dbt.bharat.gov.in to get information about the welfare schemes of all the centers and states. It will also provide regular updates about the progress of the program and will also enable the beneficiaries so that available Details about subsidy can be obtained.

Conclusion & Suggestions:
In financial system, DBT is being adopted all over the world. Initially, the number of beneficiaries was very less, but their number has increased due to the schemes runby the government and the beneficiaries are getting direct benefits. Today the subsidy is being transferred to their accounts, which has reduced the number of middlemen significantly. With this coming into effect, savings have not only been possible in Revenue but it has also helped in curbing corruption. Today, DBT is being known as Silent Revolution all over the world. Hence public financial system is not cumbersome but it is efficient and responsive to the people. The DBT system was introduced to remove middlemen from facilities such as subsidies given to citizens by the government. DBT covers 628 schemes under the 58 Ministries. Thus, to make DBT more efficient in the public financial system, more schemes need to be implemented and programs should be made to make people aware that they can provide proper information from time to time.
Despite having a robust Direct Benefit Transfer (DBT) system, India needs to focus more on the beneficiaries. Governments should adopt "principles of digital development" and people with disabilities, and include women and other historically vulnerable groups in the design process, as a result of the need for change. To do this, officials can learn from India's G2P (government-to-person) infrastructure. Beneficiaries of G2P should have the option to choose their preferred mode of payment.