A much desirable, though hugely ambitious, policy initiative of transferring vast majority of the central and state government benefits, entitlements and subsidies, as cash, directly into the Aadhaar linked accounts of the eligible beneficiaries was announced by the Prime Minister of India on the 26th of November 2012 at the first meeting of the National Committee on Direct Transfers.
It is well recognised that the programme will encounter several challenges and a number of things will need to fall in place in order for it to be a success. As the political leaders and the government officials gradually appreciate the enormity of the efforts involved and the barriers to be overcome, the timelines and phasing out of the rollout are already being reconsidered.
This Policy Brief highlights the vital elements of policy changes and actions that would be necessary (perhaps inevitable) for efficient and meaningful rollout of this grand programme, even in a scaled down form.