Direct Benefit Transfer (DBT)
Framework and Agricultural Applications
The DBT Mission was launched in January 2013 under the Cabinet Secretariat to reform the delivery of government subsidies and services. DBT routes benefits directly to the beneficiary's Aadhaar-linked bank account, eliminating intermediaries and leakages. DBT has been applied in fertilisers, LPG (Pradhan Mantri Ujjwala Yojana), food (PDS), scholarship schemes, and MNREGS wages.
- DBT Mission launch: January 1, 2013 (under Manmohan Singh government); relaunched and expanded significantly from 2014 onwards
- Aadhaar linkage: JAM Trinity (Jan Dhan Yojana — financial inclusion, Aadhaar — identity, Mobile — connectivity) is the enabling infrastructure for DBT; Jan Dhan launched August 28, 2014
- DBT in fertilisers (current model): subsidy not paid to farmer directly; PoS-based verification ensures subsidy flows to manufacturers only after verified farmer purchase; pan-India rollout by March 2018
- Proposed model (farmer-level DBT): farmer would receive cash subsidy equivalent; use it to purchase fertiliser at unsubsidised market price from any retailer
- Potential benefits: reduces diversion, promotes balanced fertiliser use (farmer might buy P&K instead of excess urea), eliminates manufacturer intermediation
- Potential challenges: farmers may struggle with cash flow for upfront purchase at full price; rural banking access; accurate farmer database required
● Tracked since February 25, 2026 · last seen April 23, 2026 · updates as the daily brief publishes
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