Direct Cash Transfer scheme will not lead to misuse of money

Direct Cash Transfer scheme will not lead to misuse of moneyPlan panel Deputy Chairman Montek Singh Ahluwalia has said that the large scale roll out of the direct cash transfer scheme of the government will not lead to misuse of cash.

"They prove two things. First, cash transfers can be organised. Second, when you give (transfer) the money (into the beneficiary's account), it is simply not wasted or used for the wrong things," he said. He was speaking at a Conference on Unconditional Cash Transfers organised by UNICEF.

A joint study by UNICEF and SEWA found encouraging results for the scheme but said that beneficiaries were facing problems in opening bank accounts. Ahluwalia said that the central bank has already issued guidelines for banks to open no-frills accounts. He believes that the opening a bank account will not be a problem for the people in the coming days.

Finance Minister P. Chidambaram has urged the banks in the country to work with the government to implement the proposed Direct Cash Transfer scheme and make it a success. He said that the proposed scheme places a big responsibility on the banks in the country. He advised them to get ready for the effective implementation of the scheme in the country and make it a successful scheme to help the citizens.