What is DBT Government Payment?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

DBT Government payment stands for Direct Benefit Transfer. Direct Benefit Transfer (DBT) is a scheme launched by the Indian Government to improve the administration of subsidies. This plan w.e.f. was started on 1 January 2013 for 26 schemes of the Central Government. As per DBT government payment, beneficiaries of government subsidies receive direct bank transfers.

DBT Government Payment

DBT Government Payments was introduced in 2013 in a phased manner. Firstly it was launched for 26 government schemes of several ministers and departments in 43 districts of the country. The scheme was modified to DBTL (Pahal), which was launched on pan India w.e.f. 01 January 2015.

An attempt to change the process of transferring subsidies into the bank account of beneficiaries is called Direct Benefit Transfer or DBT. The government of India introduced the scheme on 1 January 2013. The objective of this scheme or program is to set up a Giro system for people to transfer the subsidy directly through their linked bank accounts. Here are some reasons why DBT government payment was brought into place:

  • To help avoid corruption of the government schemes and subsidiaries made for the needy.
  • To ensure that the entire subsidiary amount directly reaches the beneficiaries without the involvement of any middlemen.

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