Financial Inclusion in Action

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Direct Benefit Transfer (DBT) in Fertiliser – Towards an Efficient Fertiliser Distribution System

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Forty-eight-year-old Devashekhar cultivates paddy twice a year. A resident of Guntur district in Andhra Pradesh, India, Devashekar purchases between 300 and 350 kg of fertiliser from retailers in his village. He is among many farmers who have now started to pay market price for fertiliser. “There has been a reduction in overcharging by retailers as… Continue reading

JAM – Using (Jan Dhan) Bank Accounts, Aadhaar and Mobiles to create new products and services, and new ways of doing things

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Jan Dhan Yojana, Aadhaar and Mobile or ‘JAM’ are creating a buzz in financial inclusion space, not only in India but across the world. JAM has been jamming newsrooms and social media after being coined in the Economic Survey 2015 and the Union Budget 2015.    The JAM trinity is seen as an important tool… Continue reading

India Post – Initiatives to Facilitate G2P Payments

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India Post has extensive outreach in rural areas of Jharkhand with 13 Head Post Offices (HPOs), 454 Sub Post Offices (SPOs) and 2,643 Branch Post Office (BPOs).[1] With 3,097 (454 SPOs + 2,643 BPOs) outlets present in rural and semi-urban areas, India Post has a reach of at least one outlet for every two of the… Continue reading

Top Blogs in Financial Inclusion – Pick your favourite

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Disseminating knowledge to aid sectoral growth has always been a critical aspect of our work. In the year 2015, we continued to accentuate our efforts to reach out to the readers with best of our research work, our evaluation of industry developments and published over 31 blogs. Here are our top viewed blogs: Over the… Continue reading

Role of Bank Mitrs in Direct Benefit Transfer Ecosystem: Are Banks and Government Ignoring Their Brand Ambassadors?

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The direct benefit transfer (DBT) programme is an important and far-reaching initiative of the Government of India. The successful rollout of DBTL (DBT for subsidy transfer of domestic LPG) could save Rs. 7,700 crore (USD 1.167 billion) for the government. This is about 38% of subsidy budget of Rs. 20,000 crore (USD 3.01  billion) for… Continue reading

Are the $2 Billion Annual Savings Arising from PAHAL Real?

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The Ministry of Petroleum and Natural Gas (MoPNG), Government of India announced its ambitious “Direct Benefit Transfer for Liquefied Petroleum Gas (DBTL)” programme on January 1, 2013. The programme had two key objectives: i) limiting subsidy outlay through de-duplication; and ii) achieving efficiency in payment transfers. Aadhaar, the unique identification system was the backbone of… Continue reading

Can “Behavioural Science” Bell Scheme Design Cat? Insights from Exploratory Research on the Public Distribution System in India

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Having tasted success with the Modified Direct Benefit Transfer for Liquefied Petroleum Gas (MDBTL) through Pahal (though sceptics have their doubts), the Government of India is dropping hints that it plans to expand the ambit of DBT further to other subsidy programmes. At about INR 460 billion ($7.4 billion), MDBTL seems to be huge, but… Continue reading

So Many Steps Forward … And Now One Big Step Back …

The January 16th 2015, Office Memorandum (OM) from the Department of Expenditure of the Ministry of Finance fixes commission for banks distributing direct benefit transfers (DBT), including those for LPG – liquid petroleum gas. The OM states that for urban schemes like DBTL (the LPG subsidy), the transaction cost may be paid at the NEFT… Continue reading

Several Times Bitten: Still Not Shy?

The intention to provide at least two accounts to each household in the next one year is welcome. But the question in everybody’s mind is: how will the target be achieved, and what will be the status of these accounts at the end of this exercise? The target itself is ambitious: we want to open… Continue reading