First in Digital Transactions and DBT | 10 Apr 2025

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. 

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.