Will AADHAR linked subsidy benefit banks?
How the AADHAR linked subsidy benefits the bank?
What is DBTL?
Direct Benefit Transfer of LPG (DBTL) scheme, which is AADHAR linked LPG subsidy given disbursed through banks. Under the (DBTL) an LPG consumer will get his/her cylinder at full market price and the differential between subsidized price and full market price i.e. the subsidy will be transferred to his/her bank account. Under this scheme, all LPG consumers will start receiving their LPG cylinders at full market price and will get their subsidy directly in their bank accounts up to a capped limit(9 cylinders in a year)of LPG cylinder. All Aadhaar linked LPG consumers will get an advance of Rs 435 in their bank account as soon as they book their first subsidized cylinder.
How it benefits banks?
Disbursing subsidy directly through bank accounts will increase the credit amount of customers which will in turn result in a boost in deposit quantity with banks. Further, such increase in banks resources will make the banks in extending their lending and investing activities.
Banks have already taken action to make benefit under this scheme, like central bank of India customers can link their bank account with AADHAR card by Internet Banking.