The Prime Minister, Dr. Manmohan Singh has called a meeting of the cash transfer committee on Monday on implementing the direct cash subsidy scheme through the Aadhaar based system.

Union Finance Minister P. Chidambaram said the Government will launch the scheme on the 1st of January 2013 and the meeting is being held in the run up to the event.

The Government payouts towards pensions, scholarships and subsidies worth thousands of crores of rupees will be directly transferred to bank accounts of beneficiaries in 51 districts spread over 15 States from the New Year Day.

Addressing the Indian Bankers Associations conference, BANCON-2012 , Mr. Chidambram said initially the scheme will become operational in 51 districts.

The entire country is proposed to be covered by the end of 2013. Aadhaar- UIDAI, a 12-digit number serving as a proof of identity and address anywhere in the country, has already been issued to 21 crore people. The scheme based on Aadhar aims at checking pilferage.