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Is UID-linked cash transfer a good idea?-Sreelatha Menon

-The Business Standard Reetika Khera Professor, Indian Institute of Technology, Delhi* “Aadhaar is being made de facto compulsory for welfare schemes. With two-thirds without Aadhaar, they are bound to be denied entitlements” There are three components of the government’s direct benefit transfer scheme — computerisation, extending Banking services and linking the benefits with Aadhaar. The real game-changers are the first two, whereas Aadhaar-enabled transfers carry the risk of excluding current beneficiaries. The Central government has...

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Banking roadblock for cash transfer scheme

-The Times of India JAIPUR: Direct cash transfer scheme that was rolled out from January 1 this year in three pilot districts of Rajasthan is facing crippling absence of Banking infrastructure and at this point it's anybody's guess when the banks can do their part to provide legs to the UPA-II's ambitious project. One of the pillar's of the project was to have Banking correspondents (BCs) in the unbanked villages so that...

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No monopoly rights for cash transfer: Finance ministry

-The Times of India The government has said that it is not handing over monopoly rights to any entity for distribution of cash under the direct benefit transfer scheme. In response to a TOI article on December 30 ("Cash transfer plan a scam in the making"), the finance ministry said it has now standardized technology to enable customers to transact with any bank through any business correspondent. Earlier, a customer was locked...

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Aruna Roy objects to direct cash transfer

-The Times of India National Advisory Council (NAC) member and MKSS leader Aruna Roy on Friday shot off a scathing letter to the finance ministry objecting to "talk" of subsidy cuts for the poor while funding programmes like Aadhar that have no legislative backing. She also suggested that pre-budget consultations for business and social sector should be held jointly in a more democratic fashion. Expressing "shock" at subsidy cuts Roy, who did...

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Pilot schemes must stabilise to show the benefits of cash transfer system

-The Economic Times The government has done well to scale down the initial reach of the direct cash transfer system of handing out subsidies. Direct benefit transfer (DBT), as it is called now, will cover only 20 districts and seven scholarship schemes instead of 51 districts and 34 schemes planned earlier. Limiting coverage makes eminent sense. It is better to do a thorough job than to fumble at a mammoth task,...

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