DBT Full Form in Banking, What Does DBT Stand For?

DBT Full Form in Banking is a Direct Benefit Transfer. Since its early inception by the Government of India starting on 1 Jan 2013 intended to improve the system of delivering cash subsidies and benefits, Direct Benefit Transfer, or DBT, has come a long way. The program’s objective was to transfer cash benefits and subsidies to people directly through their Aadhaar-seed bank accounts in an effort to significantly reduce leakages and the associated delays brought on by the flow of money through the administrative office before it goes to the recipient that it is intended for. The Department of Controller General of Accounts’ Central Plan Scheme Monitor System, a previous iteration of the Public Finance Management System (PFMS), was selected to serve as the unified platform for channeling the Direct Benefit Transfer.

CPSMS was utilized to create the recipient list, digitally sign it, and process payments into the beneficiary’s bank accounts via NPCI’s Aadhaar Payment Bridge. Since JananiSurakshaYojana’s first payment has been made to a mother in Puducherry in January 2013, DBT has emerged as a top priority and focus area for the government. It is helping to reform the government delivery mechanism by re-building the existing method in welfare schemes to achieve precise targeting of the recipients, the simple and quick flow of information and funds, and the elimination of duplication and fraud.