Direct Benefit Transfer (DBT)

Direct Benefit Transfer streamlines welfare payments, ensuring a fast, efficient, and transparent distribution of funds to recipients.
OPEN FD
Grow Your Savings Securely with a Bajaj Finance FD
OPEN FD
3 min
31-October-2025

The Direct Benefit Transfer (DBT) scheme, launched in 2013, transformed how government subsidies and benefits reach citizens. Instead of passing through multiple intermediaries, funds are now directly credited to the beneficiaries’ bank accounts. This system promotes transparency, reduces corruption, and ensures timely disbursal of funds to those who truly need them.

Just as DBT ensures financial inclusion and reliability for millions, you too can secure your money’s growth through dependable investment options like Fixed Deposits (FDs) — offering guaranteed returns and complete peace of mind.

Earn assured returns and grow your savings steadily with a Bajaj Finance Fixed Deposit, rated AAA by CRISIL and ICRA. Open FD Account.

Pro tip

Bajaj Finance offers attractive Fixed Deposit interest rates of up to 6.95% p.a. for non-senior citizens, and up to 7.30% p.a. for senior citizens, inclusive of an additional rate benefit of up to 0.35% p.a.

systematic-deposit-plan-pro-tip-banner

History of Direct Benefit Transfer (DBT)

Direct Benefit Transfer (DBT) in India was initiated on January 1, 2013, with a pilot launch in selected cities. The official inauguration took place on January 6, 2013, in Gollaprolu, East Godavari district, by Jairam Ramesh, the then Union Minister for Rural Development, and N. Kiran Kumar Reddy, the former Chief Minister of Andhra Pradesh. The first phase of DBT targeted 43 districts, focusing on scholarships and social security pensions. By December 2014, the program expanded nationwide, incorporating 34 other schemes, including the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Just like DBT ensures direct delivery of funds, your savings too can grow directly with a Bajaj Finance FD — no intermediaries, just assured growth. Check Eligibility.

How does direct benefit transfer work?

The process begins with the government complying with a list of eligible people for this scheme through the Central Plan Scheme Monitoring System (CPSMS). Afterwards, payment instructions are sent to the Public Financial Management System (PFMS) to initiate the payment instructions, which are then routed to banks after the validation of beneficiaries.

PFMS, which is integrated with 500+ banks, serves as a robust platform for verifying the beneficiaries’ bank accounts and Aadhar seeding their bank accounts with NPCI. This verification process has drastically reduced payment failures and delays.

Banks play a key role in the process as a last-mile delivery channel. Since all account-based transactions are routed through core banking channels, ensuring process efficiency has accelerated and streamlined the process of direct benefit transfers.

Automate your earnings too — choose a Monthly Payout FD with Bajaj Finance and receive regular income directly into your account. Explore FD Options.

Also read: NSC scheme

Also read: Monthly income scheme

Fixed Deposit

  1. Trusted by over 5 lakh customers
  2. Fixed Deposits worth more than Rs. 50,000 crore booked
  3. Rated CRISIL AAA/STABLE and [ICRA]AAA(STABLE)
  4. Up to 0.35% p.a. extra interest offered for senior citizens
  5. Flexible interest payout options available - Monthly, Quarterly, Half-yearly, Annually or at Maturity

By proceeding, you agree to our Terms and Conditions

Purpose and objectives of direct benefit transfers

The DBT scheme is a well-planned and well-integrated initiative introduced to streamline the transfer of subsidies. Through this scheme, the government aimed to improve the delivery and design of existing procedures in welfare schemes.

The primary goal of this scheme is to ensure a seamless flow of funds and information to the beneficiaries and to reduce fraud in the delivery system. In addition, the scheme caters to the beneficiary with precision without the need for mediators, thus reducing delay. It also reduces the number of layers involved in the process of benefit provision.

Also read: Monthly income scheme

Types of schemes covered under DBT

The categories of schemes covered are as follows:

1. Cash transfer
Under the cash transfer category, the government immediately transfers cash benefits to the beneficiary. Examples of this category include NSAP, PAHAL and MGNREGA, among others. The government can transfer the money to the beneficiaries in the following ways:

  • Beneficiaries directly receive the amount.
  • They receive the amount through the State Treasury Account.
  • The implementing agency appointed by the government makes cash transfers.
  • The amount is transferred to them directly through the state or central government.

2. In-kind transfer
Under this category, the government offers in-kind benefits to beneficiaries directly or through appointed implementing agencies. In this, the government bears the expense of procuring a benefit or subsidy. For instance, the government will purchase certain products, such as food grains, and offer them for public distribution. The beneficiaries receive these products or services for free or at a reduced cost.

3. Other transfer types
This includes all the other types of benefits besides cash and in-kind transfers to non-government members, such as NGO workers, community workers, ASHA workers, teachers and others, that contribute to the implementation of government policies. They are not beneficiaries but are offered wages, training, food, incentives, and other benefits to serve the beneficiaries.

While DBT ensures government support reaches citizens, you can ensure your savings reach your goals with a Bajaj Finance Fixed Deposit — offering one of the highest FD interest rates (up to 7.30% p.a.) in India. Open FD Account.

Also read: Dhanlaxmi Yojana

Fixed deposit variants

Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
Recommended

Fixed Deposit - 60 Months

INTEREST RATES UP TO
7.30% p.a.
Invest Online

Fixed Deposit - Senior Citizen

INTEREST RATES UP TO
7.30% p.a.
Invest Online

Fixed Deposit - Age below 60

INTEREST RATES UP TO
6.95% p.a.
Open FD

Fixed Deposit - Minor

INTEREST RATES UP TO
6.95% p.a.
Open FD

Fixed Deposit - HUF

INTEREST RATES UP TO
6.95% p.a.
Open FD

Fixed Deposit - Sole Proprietor

INTEREST RATES UP TO
6.95% p.a.
Open FD

Key government schemes under the direct benefit transfer

  • Khelo India
  • Atal Pension Yojana
  • Green India Mission National Afforestation Program
  • Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)
  • Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
  • Deendayal Upadhyay Grameen Kaushalya Yojana
  • Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana (PMBJP)
  • Pradhan Mantri Fasal Bima Yojana
  • Pradhan Mantri Krishi Sinchai Yojana
  • Pradhan Mantri Matsya Sampada Yojana
  • Pradhan Mantri Vaya Vandana Yojana
  • National Livestock Mission
  • National Food Security Mission
  • National Ayush Mission
  • National Mission for Sustained Agriculture (NMSA)
  • Swachh Bharat Mission Gramin

Benefits of direct benefit transfer

Some of the key benefits of direct benefit transfers include:

  • The scheme accelerates the flow of information and funds securely while reducing the chances of fraud.
  • It ensures precise targeting of beneficiaries.
  • It omits the need for intermediaries, such as government officers, to transfer the subsidy amount into the beneficiary’s account.
  • It offers transparency and eliminates malpractices in the subsidy distribution process, thus expediting the safe distribution of assets.
  • Beneficiaries can only link a single bank account by seeding the deposits to their Aadhaar card details to prevent duplication of subsidies.
  • This approach has enabled the unique linking of rural and urban households for government subsidies and easy money transfers.

Conclusion

Direct benefit transfers have emerged as a crucial means for the Indian government to reform its delivery system by re-engineering the existing process of welfare schemes into a process that facilitates the faster and simpler flow of funds and information. They help ensure accurate targeting of the beneficiaries and reduction of fraud. In addition, it has emerged as a high-priority area for the government to deliver development schemes, having delivered over 450 schemes to more than 900 million people through this mode.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 7.30% p.a. Book FD.

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator

FD Calculator

Sukanya Samriddhi Yojana Calculator

PPF Calculator

Recurring Deposit Calculator

Provident Fund Calculator

Gratuity Calculator

Frequently asked questions

What does DBT mean in banking?

In the context of banking, Direct Benefit Transfer (DBT) can be referred to as the process of transferring a subsidy amount and making other transfers into the account of the beneficiary directly, as opposed to providing them to government offices.

How do I enable DBT on my bank account?

To enable DBT in your bank account, visit the branch where you have opened an account and fill out the bank’s consent form, requesting them to link your Aadhaar with your account. The bank will then seed your account with an NPCI mapper to enable DBT.

What is the DBT mode of payment?

The DBT mode of payment is where subsidies and other benefits are directly transferred to the bank accounts of the beneficiaries under various Indian welfare schemes. DBT includes 317 government schemes. To avail DBT seamlessly, beneficiaries must link their bank accounts to their Aadhaar.

Is Aadhaar mandatory for DBT?

Aadhaar is not mandatory in DBT schemes.

Who is eligible for direct benefit transfer?

The eligibility criteria often vary depending on the DBT scheme. For instance, under PMUY, the eligibility is based on socio-economic factors such as income and household status. Under MGNREGS, the eligibility is based on the age, gender, and rural location.

How many schemes are under DBT?

There are numerous government schemes implemented under the DBT initiative. As of 2023, over 400 central and state government schemes are being implemented through DBT.

Is Direct Benefit Transfer safe?

DBT is considered a highly secure and transparent method of delivering benefits. It eliminates the risk of corruption and leakages that were prevalent in the traditional system of physical distribution.

Is DBT linked to Aadhaar?

Yes, DBT is primarily linked to Aadhaar. Beneficiaries need to have their Aadhaar numbers linked to their bank accounts to receive benefits under DBT schemes.

How much money is saved by DBT?

DBT has been instrumental in saving the government billions of rupees by eliminating leakages and ensuring that benefits reach the intended beneficiaries.

What are the limitations of Direct Benefit Transfer?

While DBT has been successful in many ways, some limitations include the need for beneficiaries to have bank accounts and Aadhaar cards. In areas with low financial literacy or lack of access to banking facilities, DBT implementation can be challenging.

Is DBT a subsidy?

DBT is not a subsidy itself. It's a mechanism for delivering subsidies and other government benefits directly to beneficiaries, eliminating intermediaries and reducing inefficiencies.

What are dbtr charges?

"dbtr charges" are not a specific term associated with DBT. It's possible that you may be referring to charges incurred by banks or financial institutions for processing DBT transactions. These charges may vary depending on the bank and the specific transaction.

Is investing in a Fixed Deposit a safe option?

Yes. A Bajaj Finance FD is one of the safest investment options, rated AAA by CRISIL and ICRA. It offers assured returns without any market-related risks. Check latest rates.

Show More Show Less

Related videos

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.