Personal Finance

Chidambaram to launch direct cash transfer scheme on Jan 1, 2013

After Prime Minister Manmohan Singh formally announced the introduction of direct cash transfers to beneficiaries of subsidies; Finance Minister P Chidambaram said that 42 schemes have been identified for the same, which include food, fertilizers and NREGA.

Chidambaram added that out of these 28 schemes are all ready to be rolled out via direct transfer from January 1, 2013. The finance minister also said that at present there is no proposal to transfer food or fertilizer subsidy.

The minister also assured everyone that all necessary infrastructure required for the implementation of the scheme is in place and that all digital data would soon be provided to the banks. Several members of banking correspondents armed with mini ATMs will act as bank operators. Chidambaram added that multiple distributors are expected to open distribution points as well.

The government also has plans to roll out a cash transfer scheme in 51 districts from January 1, 2013. It would later be extended to 18 states from April, 2013  and subsequently the rest of the country further into the year. At present, the government aims to cover the entire country by the end of 2013. The direct bank transfer scheme will send money straight to the bank accounts of beneficiaries and almost all of them are from poor sections.