Direct Benefit Transfer (DBT) and PM-KISAN Samman Nidhi Yojana

Q1. What problems existed in welfare benefit delivery before the introduction of Direct Benefit Transfer (DBT)?

1. Before 2013, when the government implemented welfare schemes, beneficiaries usually received benefits in cash or in kind.
2. The system faced major issues such as interference by middlemen, corruption during delivery, delays in benefit transfers, and inclusion of ghost (fake or duplicate) beneficiaries.
3. As a result, even though the government spent money on welfare schemes, the benefits often did not reach the intended beneficiaries.

Q2. What is Direct Benefit Transfer (DBT) and how did the JAM Trinity support it?

1. To address these problems, the Government of India introduced the DBT system in 2013.
2. Under DBT, welfare benefits are transferred directly to the bank accounts of beneficiaries.
3. However, in the initial stages, DBT struggled because many beneficiaries lacked bank accounts and mobile connectivity. To solve this, the government introduced the JAM Trinity:
   1. Jan Dhan Accounts – to provide bank accounts to beneficiaries.
   2. Aadhaar – for identification and to prevent ghost beneficiaries.
   3. Mobile phones – to provide real-time information about transactions.
4. Although Aadhaar is not mandatory, it is preferred for authentication and identification.

Q3. What is the role of PFMS in Direct Benefit Transfer?

1. The Public Financial Management System (PFMS) is a Central Government platform managed by the Controller General of Accounts (CGA), through which all DBT funds are processed before reaching beneficiaries’ bank accounts.
2. Currently, more than 50 ministries with 300+ schemes are using DBT to transfer funds.

Q4. What are the advantages and scale of Direct Benefit Transfer?

1. Scale: DBT has significantly improved the efficiency of welfare delivery as transfers increased from about ₹7,000 crore in 2013 to about ₹6 lakh crore in 2025 (~90 times increase).
2. Speed of Transfers: What would take ~800 years in cash transfers at ₹1 lakh per minute is now completed instantly, making DBT faster, transparent, and highly efficient.

Q5. What is the PM-KISAN Samman Nidhi Yojana?

1. Launched in 2019, it is a central sector scheme (100% funded by the government) which is implemented by the Ministry of Agriculture and Farmer’s Welfare.
2. The scheme provides direct income support to farmers.
3. Under the scheme, each farmer family (husband, wife, and minor children) receives ₹6,000 per year per family in 3 equal installments via DBT. As of March 2026, the 22nd installment has been released.
4. Initially, the scheme was meant only for small and marginal farmers. Later, it was extended to all farmers with landholdings.
5. However, the benefit is given only to landholding farmers. Tenant farmers are not eligible.
6. The identification of beneficiaries is done by State or Union Territory administrations.

Q6. Who is not eligible under PM-KISAN?

Certain categories of people are excluded from the scheme, including:

1. Institutional landholders.
2. Persons who currently hold or previously held constitutional posts.
3. Former or present Ministers, Members of Parliament (MPs), Members of Legislative Assembly (MLAs), Mayors, and Zila Parishad Chairpersons.
4. Individuals receiving pension above ₹10,000 per month.
5. Income tax payers.
6. Professionals such as doctors, engineers, lawyers, chartered accountants, and architects.

Q7. What are the key challenges and possible solutions in the implementation of DBT and PM-KISAN?