General Awareness

April 05, 2018

April 05, 2018 @ 06:03 PM


General Awareness topic for MBA aspirants - Cash Transfer Scheme is boon or bane?

MBA aspirants must be updated with General Awareness on current topics. General awareness topics with analytically drawn conclusions will benefit you in Essay writing   / GD & PI. Today, you will read General Awareness Topic:

Cash Transfer Scheme is boon or bane?

This January saw the roll out of the much awaited direct benefits cash transfer scheme (DBTS) in around 20 districts. The initial plan was to roll out this scheme in close to 45 districts, which obviously did not happen.

This scheme will affect close to 1 lakh people residing in these 20 districts initially at roll out. This facility has been specifically connected to six schemes which include pension, scholarship and employment guarantee. The cash transfer scheme for food or fuel will be rolled out at a later stage, the timeline of which is still unknown.

In the DBTS, beneficiaries who own an Adhaar card would get the money directly transferred to their bank account. They would just need a 12 digit Adhaar number to get this transfer done. In this scheme, the beneficiaries would get the cash instead of the subsidies for food, pension, scholarship etc. This scheme would mark a change for the poor. 

There would be no middle man and hence there would be no chance of anyone making big bucks out of these subsidies. Also the poor would get the money using which they can buy the services from the market. This scheme leaves no room for corruption or money getting transferred elsewhere.

As with any system, there are obvious drawbacks with DBTS as well. The first drawback occurs in the form of Adhaar card. UID is a system that is typically based on biometric impression which accepts your thumb impression. In 90% of the cases, this thumb impression is not detected in the first go by the machine implemented in these districts. 

A lot many times the machine becomes faulty seeking repair. The alternate provision in such cases for the Adhaar card owners would be manual thumb prints. If the cash transfer is to be accepted manually, it could lead to frauds. So, this system is not completely fault proof as yet.

This system if gives surety that all the cash transfers are made to the individual’s bank account. Now, of the districts where the scheme has been implemented, there are no banks. Also, in some cases the individuals do not have a bank account. There is no provision in the scheme for such cases. 

The scheme does not talk about opening any bank accounts for these individuals. So, how would these individuals seek their money or, what is the government planning to do in this situation.

Also implementation of this scheme is yet to be carried out in food, fertilizer and fuel. The government will surely face an issue when implementing them. In the purview of the current public distribution system, the food subsidies would be offered to the respective individual’s bank accounts only after they pay the amount for the food in full at the shops. Same is the case with the fertilizers or fuel. 

The cons are way too many when compared to the pros. In fact, the scheme is currently not benefitting a lot many people. It can be said that the scheme was implemented way too early and with less planning on the table. 

With no bank accounts/ branches, the government should have had a Plan B in their mind. As of now, it is a bane in the making if no alternate provisions are made. 

Read General Awareness Topics, Stay informed and inspired at MBA Rendezvous

Crucial Dates, You Should not Miss

IMI New Delhi
Admissions open for PGDM / PGDM(HRM) / PGDM(B&FS) at IMI New Delhi. Last date to apply is Dec 3rd, 2018.
Birla Institute of Management Technology (BIMTECH)
BIMTECH Admissions Open for 2019.
XIMB, XUB Admissions Open for 2019 at Xavier Institute of Management. Last date to apply December 7th, 2018.
MDI Gurgaon
Admissions Open for PGPM | PGPM-HRM | PGP-IM 2019 at MDI Gurgaon. Last date to apply November 23th, 2018
Admissions open for PGDM-C 2019-2021.
Goa Institute of Management
Admissions open for 2019-2021 at GIM. Last date to apply is November 30th, 2018
Admissions open for PGDM 2019-2021 at SDMIMD.
IMT Ghaziabad
Admissions open for 2 Year PGDM and MBA programs at IMT Ghaziabad- Application Deadline is November 22nd, 2018
ICFAI Business School
ICFAI Business School Accepting Applications for IBSAT 2018
Lal Bahadur Shastri Institute of Management (LBSIM)
Admissions open for 2019 at LBSIM, New Delhi. Last date for applying Dec 15th, 2018
Experience@TAPMI Admissions Open for 2019
MDI Murshidabad
Admissions Open for PGP 2019-21 at MDI Murshidabad
SIBM, Bengaluru
Admissions Open for MBA 2019-21 at SIBM, Bengaluru
XAT 2019 Registration, Application Ends on November 30th, 2018. Exam Date January 6th, 2019