3 weeks ago
Kerala shifts welfare pensions to Aadhaar-linked Direct Benefit Transfer
The government in Kerala gives money every month to people who need help, like older people.
Before, workers from cooperative banks brought the money to people's homes.
The government found problems with this way of giving money.
Sometimes the money was late or paid twice to the same person.
So the government decided to change the system.
Now the money will go directly into people's bank accounts using a special identity number called Aadhaar.
This is called Direct Benefit Transfer.
Most people will get their money this way now.
People who are very sick and cannot leave their beds will still get money at home.
This new method helps make sure money reaches the right person.
The Kerala government will stop distributing social security and welfare pensions through cooperative banks.
All pension beneficiaries except bedridden patients must receive payments via Direct Benefit Transfer to Aadhaar-linked bank accounts.
Bedridden beneficiaries will continue to receive pensions at home through the doorstep delivery system.
Repeated delays, record-update failures, reconciliation issues, and duplicate payments prompted the change.
The shift aims to comply with DBT norms and avoid losing central financial assistance and bank incentive payments.
- Who
- The Kerala government, acting on an order by Additional Chief Secretary (LSGD) K R Jyothilal, with in-principle approval from the Finance Department.
- What
- Stopping pension delivery through cooperative banks and making Direct Benefit Transfer to Aadhaar-linked bank accounts mandatory for all social security and welfare fund board pension beneficiaries except bedridden patients.
- Where
- Kerala, India; the order was issued in Thiruvananthapuram.
- When
- August 7, per the recent government order.
- Why
- To address pension payment delays, record-update failures, reconciliation issues, and duplicate payments, and to avoid losing central financial assistance for not fully complying with Direct Benefit Transfer norms.
Key facts
- State
- Kerala
- Old system
- Doorstep pension delivery by cooperative banks
- New system
- Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts
- Exceptions
- Completely bedridden beneficiaries continue receiving pensions at home
- Order issued by
- Additional Chief Secretary (LSGD) K R Jyothilal
- Approval
- In-principle approval from the Finance Department
- Reason for change
- Payment delays, reconciliation issues, duplicate payments, and bank incentive costs
- Date
- August 7
Quotes
Order issued by Additional Chief Secretary K R Jyothilal
Additional Chief Secretary (LSGD) of Kerala Finance Department
““The government has examined the matter in detail and has accorded in-principle approval for disbursing pensions through Direct Benefit Transfer to Aadhaar-linked bank accounts of all social security and welfare fund board pension beneficiaries, except those who are completely bedridden””
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