International Journal of Scientific & Engineering Research Volume 8, Issue 6, June-2017 1189 ISSN 2229-5518 IMPACT OF DIRECT CASH TRANSFER In LIEU OF PUBLIC DISTRIBUTION SYSTEM: A POLICY REVIEW OF CHANDIGARH ,INDIA Neha Sharma * Abstract Direct Benefit Transfer (DBT) scheme has started in Chandigarh (U.T.) in lieu of Public Distribution System (PDS). Its main purpose is to overcome the deficiencies of PDS. The success of this new scheme crucially depends upon the extent of financial inclusion, financial literacy, and physical accessibility of food grains throughout the length and breadth of the country. The present study tries to report the satisfaction level of beneficiaries in Chandigarh from DBT scheme. The objective of this study is to find the gaps that why citizens are not accepting this project. It also aims to evaluate the impact of scheme on women dependency. The paper is based on the primary data collected from the various areas of Chandigarh. Perception survey method has been used to explain the views of the respondents. Three sets of respondents have been interviewed and their perceptions have been recorded. Those are Beneficiaries of DBT scheme, Depot Holder and Governmental Officials. The responses of the households indicate that efforts are needed to meet the pre-requisites of successful implementation of DBT. The research found that more than 52 percent respondents are neither getting cash nor they are getting DBT. 18 percent are still not registeredIJSER with the scheme. The amount which citizens are receiving is not at all sufficient. 20 percent of the people have received cash in initial months and later on they didn’t receive. While an interaction with Depot walas, they stated that, after DBT scheme they become unemployed. A ‘Signature Abhiyaan’ has been conducted along with the help of citizens of Chandigarh to stop the scheme but nothing has been done so far. Overall, the study concludes that at implementation level, there still exists scope for improvement. Also, improvement in financial awareness can indirectly help in successful implementation of this scheme. Keywords: Direct Benefit Scheme, Financial Inclusion, Public Distribution System, Women Dependency. * Neha Sharma is currently pursuing M.phil in Public Administration from Panjab University, Chandigarh, India , Email : [email protected] IJSER © 2017 http://www.ijser.org International Journal of Scientific & Engineering Research Volume 8, Issue 6, June-2017 1190 ISSN 2229-5518 1 INTRODUCTION as, scholarship, pensions, Mahatma Gandhi Socio-economic growth, poverty National Rural Employment Guarantee Act elimination and overall development are the (MGNREGA), Janani Suraksha Yojna, Direct main objectives of the Government of India. To Benefit transfer for LPG, Direct Benefit Transfer meet these objectives a number of schemes and for Kerosene. programmes have been introduced. Out of that 1.2 WHY DBT? Direct Benefit Transfer (DBT) is an endeavor to The PDS has been criticized by many change the mechanism of transferring subsidies academicians, social activists and journalists. to the beneficiary’s bank account by the The basic criticisms are centered on the loop- eliminating the intermediaries. The scheme holes in procurement of food grains from the provides subsidies, scholarship to students, farmers/millers, huge losses in storage of food benefits to women and micro credit to poor grains in FCI go-downs, substantial leakages in women in rural areas. Subsidies are in the form transportation of food grains from storage points of cash which are directly credited to the to the Fair Price Shop (FPS) (ultimate point of beneficiary account through a biometric based distribution of food grains) and errors in Aadhaar Card/Number link to their bank identifying deserving beneficiaries. In this account. The primary aim of this program is to background the utility of running PDS with remove constraints and open up distribution of huge subsidy has become controversial. A study Central Government sponsored funds to the by planning commission states that PDS through beneficiaries directly through bank account. This fair price/ration shops in subsidized grain is very scheme can be implemented in rural sector for incompetent. It is found out that only 42 percent their institutional and infrastructural of the subsidized grain is reaching the targeted development and help the poor, marginalized, people. [TPDS Report, March 2005]. In response deprived and targeted beneficiaries. Such to these criticisms, the Union Government has schemes areIJSER also being implemented in many come out with Direct Benefit Transfer (DBT) countries across the globe. In Chandigarh, DBT Scheme as an alternative to PDS. Scheme has started in the year 2014 in lieu of Finance minister Arun Jaitley said in his Public Distribution System (PDS). 2016-17 budget speech, DBT in food grains is just beginning in “A social security platform will be developed using DBT as the medium for providing using Aadhaar to accurately target beneficiaries.” subsidies to poor households. The DBT scheme The platform is a latest version of the has been introduced to overcome the direct benefit transfer (DBT) platform. The plan deficiencies of PDS. Also, despite a number of is to create a master database of all Indians schemes, the beneficiaries were not getting through the direct linking Aadhaar, national benefits because they had to pass through the population register and through caste census various intermediaries who caused leakages and and directly transfer subsidy or cash or benefit delays. DBT has potential to control corruption in their respective bank accounts. by reducing the intermediate cost. The main aim DBT ensures the government of india to is to improve the delivery system and reduction transfer benefits using a single and persons own of the misuse of funds. The scheme of DBT has Aadhaar number. With this, Aadhar will become to go a long way to help the deprived, poor, the unique financial account number or address marginalized and other beneficiaries. Under the for every individual in the country. Both Central DBT, many more schemes have introduced such and state government will transfers direct cash IJSER © 2017 http://www.ijser.org International Journal of Scientific & Engineering Research Volume 8, Issue 6, June-2017 1191 ISSN 2229-5518 and subsidies in India in this account. Currently subsidized LPG. There are only 2.41 lakh this fianncial account stands about at Rs.4.2 consumer of the total 5.14 lakh can linked their trillion a year ($70 billion approximately; about 4 Aadhaar to gas agencies. But only 1.61 lakh have percent of India’s GDP). Eaprlier and currently, linked account remaining 3.52 lakh not get the these transfers of cash or subsidies happens subsidy. Ludhiana and other districts included through various middlemens . In the process, the Kapurthala, Hoshiarpur also not have amount of subsidy or cash amount gets satisfactory situation. diminished in actual value before it reaches the Korde [2015] opined that in the ultimate beneficiary in the country. implementation of DBT only very few Aadhaar [www.limemint.com, ref 16] enabled with accounts, low accessibility to Rajiv Gandhi had famously said that “only 15 banking service, and low level of awareness of paise of a rupee of government spending reaches the the scheme. Most rural people are not aware ultimate beneficiary.” about this scheme and remaining are highly Various studies have already concluded dependent on others to avail banking services, that today this amount has increased to 50-60 so that they can easily get benefit as they do not paise of a rupee. Still scope leaves a huge feel safe while transacting through others. Other leakage of up to 2-3 percent of Gross Domestic issues like transfer of subsidy to female Product every year. members' accounts need to be addressed as cases The initative of DBT scheme aims to major are of misuse of finance by male members' change in the system by transferring money government requires giving attention on these digitally to the beneficiary, thereby eliminating issues for better implementation and fruitful the levles of middlemens in the system. Because results. this aadhar biometrics system is unique. This Joseph [2016] opined that the DBT in LPG DBT system will removes ‘duplicacy, ‘false’ and scheme which is called PAHAL by the ‘fake’ accounts.IJSER This project would, over the time government found substantial systematic save the government spendings up to 1.2 percent problems. So the Modi government starts a of Gross Domestic Product, which is in lost campaign ‘give it up’, calling up consumer to transit. DBT scheme, thus gives a unique ‘win- give up their LPG subsidies under the scheme win solution’ for both demand and supply side subsidy is transferred directly to the bank and that is residents of the country and the accounts of beneficiaries to cut down the government on the other side. wastage. With the help of the scheme India has [www.limemint.com, ref 16] saved Rs 15,000 crore annually, and the middleman and black marketers have been hit. 2. REVIEW OF LITERATURE Kumar [2016] opined that the main In the recent literature, many studies are objective of DBTL scheme of every organization available that highlights the pros and cons of is to increase the number of satisfied customers DBT scheme. Among those, the findings of some so that to increase loyalty as well as revenue. of them are as follows: The awareness about the DBTL is very high as 98 Kohli [2013] opined that in Punjab, many percent customers get information and districts like Amritsar, Gurdaspur Moga, and satisfaction with DBTL services provided by the Hoshiarpur got extension to get subsidized in company, distributors, bank, and helpline. LPG. But in Jalandhar district, people still faces Customers are linked with their bank account problems as they did not get an extension in with Aadhaar. IJSER © 2017 http://www.ijser.org International Journal of Scientific & Engineering Research Volume 8, Issue 6, June-2017 1192 ISSN 2229-5518 Das and Bhattacharjee [2016] opined that DBT is to bring transparency and terminated 4.