Aadhaar based Direct Cash Transfers - Rollout to begin from 1 January 2013 in 51 districts

A meeting of the Executive Committee on Direct Cash Transfers was held November 9 by the Principal Secretary to the Prime Minister along with the Cabinet Secretary. The  meeting was attended by the Secretaries and representatives of the Departments of  Financial Services, UIDAI (Aadhaar), IT, Planning Commission,  Expenditure, Posts, Rural Development, Social Justice & Empowerment, Tribal Affairs, Minority Affairs, Higher Education, School Education, Health & Family Welfare, Women & Child Development, Labour & Employment, Petroleum & Natural Gas, Fertilizers, and Food & Public Distribution.

            The Prime Minister had recently constituted a National Committee on Direct Cash Transfers under his chairmanship and an Executive Committee on Direct Cash Transfers to give a thrust to roll out a cash transfer programme across the country, leveraging the Aadhaar platform.

            The purpose of the meeting today was to move forward and operationalise Direct Cash Transfers for which many steps need to be taken. The necessary steps include (i) identification of areas where Direct Cash Transfers can be introduced, (ii) establishing mechanisms for preparing rollout plans for these areas, (iii) ensuring rapid rollout of Aadhaar to achieve better coverage (at least 80%), (iv) ensuring universal access to banking and financial inclusion and (v) setting up mechanisms to enable cash transfers to actually take place. To facilitate all this, there is a need to constitute other committees including a Technology Committee, a Financial Inclusion Committee and Implementation Committees within each Ministry so as to ensure coordination and quick implementation.