Aadhaar-based cash transfer of 29 schemes from Jan 1: FM

Benefits under 29 welfare schemes being operated by different ministries would be transferred through Aadhaar-enabled bank accounts in 51 districts spread over 16 states from January 1 next year, Indian Finance Minister P Chidambaram said on Tuesday.

The scheme of cash transfer into bank accounts, the minister said, would enable the government to extend benefits to the needy at the click of a button without any fear of misuse or duplication.

"...roughly about 29 schemes are ready to start from the January 1. It is possible that one or two schemes may start a few days or a couple of weeks late. But ultimately we want to load all these schemes on the system. Out of the 42, we think about 29, give or take one or two, will be ready," Chidambaram said while addressing a press conference at Congress office.

At present, government operates about 42 schemes, of which 29 would be covered by the cash transfer scheme that is to be launched from January 1, 2013 in 51 districts. The second roll-out to cover more districts would be launched in April 2013, he said.

The schemes which would come under the purview of the cash transfer scheme would include those of Ministry of Social Justice and Empowerment, Human Resources Development (HRD) Minority Welfare, Women and Child Development, Health and Family and Labour and Employment.

With the introduction of the direct cash transfer scheme, Chidambaram said, "Falsification and duplication will be practically eliminated and I believe that (it) would result in considerable savings to the exchequer."

Prime Minister Manmohan Singh on Monday had directed all the ministries concerned to work in close coordination to ensure success of the scheme.