Government will start direct cash transfers of subsidies into beneficaries' bank accounts in 51 districts across the country through the Aadhar based system from 1st January 2013. Addressing the first meeting of the National Committee on Direct Cash Transfers, Prime Minister Dr. Manmohan Singh said that Direct Cash Transfer will open the doors for eliminating waste, cutting down leakages and targeting benificiaries better.

Taking a stock of preparedness of direct cast transfer scheme, Dr. Singh said it should be ensured that every rupees spent by the Government is spent truly well and goes to those who really deserved it. He said Addhar platform and financial inclusion are the twin pillars for the success of Direct Cash Transfer Scheme.

Initially the scheme will be rolled out in 51 districts from the 1st January 2013. Subsidies on LPG, kerosene, pension payments, scholarships as well as payments under MGNREGA and other government welfare programmes would be made directly into the beneficiaries accounts. The Unique Identity Development Authority of India will set up a dedicated cell of technical experts to facilitate Aadhar enabled Direct Cash Transfers and help individual Ministries.

The Aadhar number that is being assigned to all Indians will form the basis of not only cash transfer of all government subsidies, but all state services that will be linked to it. This would mean services such as education, health and banking services can be availed of using Aadhar platform by 2017, making them seamless, efficient and transparent.