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How does the Direct Benefit Transfer (DBT) scheme impact the efficiency of PDS? Evaluate the pros and cons of shifting to DBT for PDS beneficiaries. give four points each with one sentence explanation only?
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How does the Direct Benefit Transfer (DBT) scheme impact the efficienc...
Impact of Direct Benefit Transfer (DBT) on PDS Efficiency
The DBT scheme aims to streamline subsidy delivery by transferring benefits directly to beneficiaries' bank accounts, thereby enhancing the efficiency of the Public Distribution System (PDS).
Pros of Shifting to DBT for PDS Beneficiaries:
  • Reduction in Leakages: Direct transfers minimize corruption and leakages associated with physical distribution of food grains.
  • Empowerment of Beneficiaries: Beneficiaries gain autonomy over their purchases, allowing them to choose food items based on their needs and preferences.
  • Cost Efficiency: The government can save on administrative costs associated with the maintenance of PDS infrastructure and logistics.
  • Financial Inclusion: DBT promotes banking habits among beneficiaries, facilitating broader access to financial services and promoting economic growth.

Cons of Shifting to DBT for PDS Beneficiaries:
  • Digital Divide: Rural and marginalized populations may lack access to banking facilities and digital literacy, causing exclusion.
  • Market Volatility: Beneficiaries may face challenges in navigating fluctuating market prices, impacting their food security.
  • Dependency on Infrastructure: A robust banking and digital infrastructure is essential; any failure can disrupt benefit disbursement.
  • Transition Issues: Moving from a ration-based system to cash transfers may create confusion and resistance among beneficiaries accustomed to PDS.

In conclusion, while the DBT scheme has significant potential to enhance PDS efficiency, careful consideration of its challenges is essential to ensure that no beneficiary is left behind.
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How does the Direct Benefit Transfer (DBT) scheme impact the efficiency of PDS? Evaluate the pros and cons of shifting to DBT for PDS beneficiaries. give four points each with one sentence explanation only?
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How does the Direct Benefit Transfer (DBT) scheme impact the efficiency of PDS? Evaluate the pros and cons of shifting to DBT for PDS beneficiaries. give four points each with one sentence explanation only? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about How does the Direct Benefit Transfer (DBT) scheme impact the efficiency of PDS? Evaluate the pros and cons of shifting to DBT for PDS beneficiaries. give four points each with one sentence explanation only? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How does the Direct Benefit Transfer (DBT) scheme impact the efficiency of PDS? Evaluate the pros and cons of shifting to DBT for PDS beneficiaries. give four points each with one sentence explanation only?.
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