The Government intends to be cautious in this technology-driven programme. Initially it was planned to effect this cash transfer programme in 43 districts of the country. But the Government intends to do it in phases. The roll out will begin for 20 districts in January, 10 districts in February and 12 districts in March.

Earlier it was thought that the Unique Identification Card (UID) – Aadhar Card – would be the base for identification of the beneficiaries. But the Government now says “whether Aadhar or not the roll out would be for all the targeted beneficiaries.”

Also the Direct Benefits Transfer will not be a substitute for delivery of public services which would continue to take place as per the normal delivery channels. Direct Benefits Transfer will not replace food with cash under the Public Distribution System.

The seven schemes selected by the Government for direct cash transfer are those for which adequate infrastructure are already in place. These schemes are - Post-Matriculation scholarship for Scheduled Caste students, Pre-Matriculation scholarship for Scheduled Caste students, Post-Matriculation scholarship for Other Backward Caste students, Post-Matriculation scholarship for Scheduled Tribe students, Indira Gandhi Matrutva Sahayata Yojana, Dhanalakshmi Scheme, stipend to trainees under the scheme of welfare of Scheduled Caste/Scheduled Tribe job seekers through Coaching-cum-Guidance and Vocational Training.

“The Direct Benefit Transfer plan will take place for seven schemes in phases from January 1. The roll out will begin for 20 districts in January, 10 districts in February and 12 districts in March, “ said the Union Home Minister P Chidambaram.

He further clarified : “we are moving cautiously in phases to effect Direct Benefit Transfer as it is technology driven. We want to learn from our mistakes which may occur in this roll out so that we can modify our approach subsequently.”

Direct cash transfer for Post-Matriculation scholarship for 48, 000 Scheduled Caste students will take place in seven districts namely Puducherry, Nawanshahr, Fatehgarh Sahib, Gurdaspur, Anantpur, East Godavari and Diu

Direct cash transfer for Pre-Matriculation scholarship for 24,000 Scheduled Caste students for only East Godavari district

Direct cash transfer for Post-Matriculation scholarship for 105,000 Other Backward Castes students will take place for six districts, namely Puducherry, Alwar, Anantpur, East Godavari, Daman, North Goa

Direct cash transfer for Post-Matriculation scholarship for 4,800 Scheduled Tribe students will take place in Tumkur, Waynad, Harda districts.

Direct cash transfer for Indira Gandhi Matrutva Sahayata Yojana will take place for 55,000 beneficiaries in six districts namely Dharwar, Puducherry, NW Delhi, Diu, North Goa and Amaravati.

Direct cash transfer for Dhanalakshmi Scheme will take place for 8,000 beneficiaries in Fatehgarh Sahib only.

Direct cash transfer for stipend to 650 trainees under the scheme of welfare of SC/ST job seekers through Coaching-cum-Guidance and Vocational Training will take place in 10 States namely Karnataka, Kerala, Haryana, Punjab, Delhi, Madhya Pradesh, Rajasthan, Andhra Pradesh, Maharashtra and Jharkhand.