Uttar Pradesh
First in Digital Transactions and DBT
- 10 Apr 2025
- 3 min read
Why in News?
Uttar Pradesh has secured first place in the country in terms of digital transactions .
Key Points
- About the issue:
- Under the Direct Benefit Transfer (DBT) scheme, the state government has transferred Rs 1,11,637 crore directly into the accounts of 9.08 crore beneficiaries through 207 schemes of 11 departments.
- This has not only brought transparency in the system but has also resulted in saving of Rs 10,000 crore by eliminating middlemen .
- Uttar Pradesh has now become the second largest economic contributor to the country with a 9.2% share in the country's Gross Domestic Product (GDP).
- While the country's GDP growth rate was 9.6% in the year 2023-24, UP's growth rate was 11.6%.
- According to the NITI Aayog report, Uttar Pradesh has been declared a ' front runner' in terms of 'fiscal position'.
- The role of Unified Payments Interface (UPI) was also important in this remarkable growth . Easy access to digital banking , availability of internet in villages and financial awareness further accelerated this progress.
- Under the Direct Benefit Transfer (DBT) scheme, the state government has transferred Rs 1,11,637 crore directly into the accounts of 9.08 crore beneficiaries through 207 schemes of 11 departments.
Direct Benefit Transfer (DBT) Scheme
- Objective : The scheme is designed to aid faster flow of information and funds to the beneficiaries and to reduce fraud in the distribution system.
- Implementation : It was launched by the Government of India on January 1, 2013 as a mission to reform the government delivery system.
- The old version of the Public Financial Management System (PFMS) of the Accountant General's Office i.e. 'Central Plan Scheme Monitoring System' was chosen as a platform for direct benefit transfer.
- Components of DBT: The primary components for implementation of Direct Benefit Scheme include beneficiary account verification system; integrated, stable payment and settlement platform with RBI , NPCI , public and private sector banks, Regional Rural Banks and Co-operative Banks (viz. Core Banking Solution of banks, settlement systems of RBI and Aadhaar Payment System of NPCI etc.).
- Aadhaar not mandatory: Aadhaar is not mandatory in DBT schemes. Since Aadhaar provides unique identification and is useful in targeting the intended beneficiaries, Aadhaar is preferred and beneficiaries are encouraged to have Aadhaar.
