Electronic Cash Transfer Scheme - The saviour of India

India is reeling under two major problems (i) the neck-breaking burden of population and (ii) corruption that has become ingrained in our genetic makeup. The solution to the first problem, in Indian scenario, I believe, is a contraceptive pill - "literacy". And the solution to the latter one is "technology'.

Literacy will enthuse our folks to think on their own way. It will not let them take advice from others without questioning it. A paradigm shift will occur in the way our political system is dispensed today. It will teach us to differentiate between good and bad, fresh and rotten, right and left, colors, and so on. The process is already unleashed. We are already getting the benefits of this paradigm shift. Our Election System, although a herculean process, has become disciplined to a large extent in the last couple of decades.


"Corruption" has become the buzz word in the political arena in recent times. Parliament has been rocking frequently with this word now-a-days. Corruption is a concept that is coming from time immemorial. Fifty years ago it was a taboo word but now it is a generality. Almost everybody has learnt to live with the word. Thus is corruption is ingrained in our gene. Actually this is an obvious outcome of population explosion. Struggle for existence has taught us to get the scarce resources by hook or by crook methods. This leads to corruption. Finance Minister, Mr. P. Chidambaram, said, that at present it costs government Rs.3 to transfer Rs.1 to the pocket of a beneficiary. The rest goes on administrative expenses, waste and corruption.
Fig. The Aadhar Card
Now-a-days we observe many honest initiatives to ward off this corruption. Most of them are emotional and not efficacious. Way back in the year 2006 Planning Commission of India had conceived a specific initiative to identify a resident of India (may not be Indian citizen) - "Adhaar Card Initiative" (UIDAI). This Adhaar Card (or Unique Identity) is ordained to identify and deliver the benefits of various welfare projects directly to the beneficiaries. Nandan Nilekai, the visionary from Infosys, was given the responsibility to carry out this ambitious project of creating and installing the mechanisms in place which is a stupendous task.

The next initiative is recently taken by Dr. Manmohan Singh, PM of India, is the Direct Cash Transfer Scheme (CTS) to the beneficiaries of the welfare projects. Under the stewardship of the PM this project is in full gear now. Under this scheme:

• All the residents of India will possess a valid Adhaar Card. By 1st April 2014 all the districts of India will be covered.
• Everybody should have a bank account of his/her own. 
• In the market prices of all commodities and services will be same for everybody be it BPL or APL. After purchase the subsidy amount will be directly sent to the beneficiary account. 
• From 1st Jan 2013 Government of India will transfer 29 different types of benefits like pensions, scholarships, fuel subsidy, ration, etc. through CTS. By 1st Apr 2012 total 42 benefits will be provided through CTS.

Till now an inefficient system was prevailing in India where subsidy was milked into corruption. This CTS system will plug those loop-holes. This will dry up the extra and normal income of many household. That will precipitate different types of sociological problems. Newer solutions will also come up. Nitish Kumar government of Bihar has already tasted the success of this system. He decided to use CTS instead of physical delivery of free bicycles for school kids, to eliminate the multifarious leakages in physical delivery of subsidized bicycles.

The Urban Citizens are trying to become the whistle blowers against the corruption. Just help in expediting the process of UID and CTS and reap what you cherished for a long time.

Recommended for reading

1. Dash for cash By Seetha, Varun Verma, Velly Thevar in The Telegraph, Dec23, 2012