A simple introduction to this answer can revolve around a general statement about direct benefit transfer.

Direct Benefit Transfer (DBT) was created with the aim of reforming the Government delivery system by re-engineering the existing process in welfare schemes for a simpler and faster flow of information/funds and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud.

DBT Mission was created in the Planning Commission to act as the nodal point for the implementation of the DBT programmes.

This Framework is to be followed by all Ministries/ Departments and their attached Institutions/PSUs. It is applicable on all Central Sector (CS)/ Centrally Sponsored Schemes (CSS) and to all schemes where components of cash is transferred to individual beneficiaries.

Body

You may incorporate some of the following points in the body of your answer:

Importance of DBT

• It evolved the Public Finance Management System and created the Aadhaar Payment Bridge to enable instant money transfers from the government to people’s bank accounts.
• It not only allowed all rural and urban households to be uniquely linked under varied government schemes for receiving subsidies directly into their bank accounts but also transferred money with ease.
• In rural regions, it has become the backbone for supporting the growth of the agricultural economy by allowing the government to provide financial assistance effectively and transparently to farmers with lower transaction costs – be it for fertilisers or any of the other schemes including the PM Kisan Samman Nidhi, PM Fasal Bima Yojana, and PM Krishi Sinchayi Yojana.
• In urban India, the PM Awas Yojana and LPG Pahal scheme successfully use DBT to transfer funds to eligible beneficiaries.
• There are various scholarship schemes and the National Social Assistance Programme use the DBT architecture to provide social security.
• DBT under rehabilitation programmes such as the Self Employment Scheme for Rehabilitation of Manual Scavengers opens new frontiers that enable social mobility of all sections of society.
• During the pandemic, it aided the government to reach the last mile and support the most deprived in bearing the brunt of the lockdown.