Electronic cash transfer system for the welfare schemes is an ambitious project to minimize corruption, eliminate wastage and facilitate reforms. Comment.

Theme

T107 DBT, Aadhaar & digital welfare delivery

What UPSC asks in this theme

Cross-paper GS2–GS3: DBT as a progressive but limited reform, electronic cash transfers to cut corruption, Aadhaar vs NPR, and how DBT changes the subsidy scenario.

What to cover

• JAM trinity (Jan Dhan, Aadhaar, Mobile)
• Savings and leakage reduction claims and their measurement
• Limits: exclusion errors, biometric failure, last-mile banking, market price volatility for cash in place of kind
• Aadhaar Act and Puttaswamy (Aadhaar) judgment
• Price subsidy vs DBT: fertiliser, LPG (PAHAL), food

Writing the answer

• Present benefits and limits with data
• Link to GS3 subsidy reform

These notes are for the whole theme, built from all 4 of its PYQs. UPSC does not publish model answers.