Alongside the Indian government and few State governments, MicroSave was involved in the initial attempts at digitization and Direct Benefits Transfer (DBT). Direct Benefit Transfer or DBT is a way to pass on the benefits such as conditional and/ or unconditional cash transfers, and subsidies, by crediting the beneficiary’s bank accounts / wallets directly. On the basis of the learning, MicroSave developed a DBT Readiness Assessment tool which looks holistically at the environment for direct benefit transfer and the current status of different players / systems and the gaps, if any, which may impede the roll-out of DBT.

The tool is used by a variety of ministries in India to facilitate digitization and direct benefit transfers of their respective schemes. This model of transferring benefits directly to the intended beneficiary reduces costs, cuts down on leakages and eliminates middlemen from the system. This presentation highlights the key learning on DBT that was presented during Asia Pacific Financial Inclusion Summit, Manila.

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