Millions of people will get benefits under 29 welfare schemes by the roll out of direct cash transfer through their Aadhar-enabled bank accounts in 51 districts across the country from 1st January next year. Briefing the media in New Delhi today, Finance Minister P.Chidambaram said, 42 schemes have been identified for the Aadhar-linked direct cash transfer that would eliminate leakages, duplication and misuse of cash benefits extended by the government to the people. Mr Chidambaram said 29 schemes are ready to be rolled out on 1st January, 2013. The second roll-out to cover more districts would be launched in April 2013.

The Finance minister said, banking correspondents including self help groups and other organisations, will be utilized for distribution of cash benefits. He said, the beneficiaries in villages will also be able to withdraw their cash through miniature hand-held mobile ATMs using ATM cards of their bank accounts. The schemes which would come under the purview of the direct cash transfer scheme include those of ministries of Social Justice and Empowerment, Human Resources Development, Minority Affairs, Women and Child Development, Health and Family Welfare and Labour and Employment.

He said, the infrastructure is ready and the ministries have been asked to finalise database of beneficiaries. The Finance Minster said, banks and the state governments have been sensitized on the electronic transfer of cash. He said, food and fertilizer subsidies have not been included as of now.

Rural Development Minister Jairam Ramesh said, through direct cash transfer, beneficiaries including pensioners, the poor and underprivileged will be benefited.
Families with AADHAR cards entitled to subsidies, pension and scholarships among other benefits will get money directly in their bank accounts. The 12- digit Unique AADHAR number serves as a proof of identity and address anywhere in the country. The direct cash transfer scheme will check leakages in the system and ensure that the money reaches the targetted beneficiaries instantaneously. The beneficary will have to pay no money in lieu of service rendered by banking correspondents.