Union Government Constituted a National Committee on Direct Cash Transfers

The Union Government on 25 October 2012 constituted a National Committee on Direct Cash Transfers. The committee would be responsible to coordinate in development of the process for making the transfer of the cash directly to the individuals, being provided under different types of government schemes and programs.

The Prime Minister of India, Manmohan Singh would be the Chairperson of the committee and the group of members would include eleven Cabinet Ministers, two Ministers of State with independent charge, the Deputy Chairman Planning Commission, the Chairman UIDAI, the Cabinet Secretary with the Principal Secretary to the PM as the convenor. The Prime Minister can invite some more officers, minister or any expert for the committee’s meet.

Proposed tasks of the National Committee on Direct Cash Transfers are:

a)    With a clear objective of establishment of transparency, accountability and efficiency in the process the committee would guide and provide a vision and direction for enabling the cash transfers directly to ensure that the individuals are benefitted by the schemes and programs being run by the Government. They would also control the investments being made in the Aadhaar Project that includes the financial initiatives of the government.
b)    Policy objectives and strategies would be determined and framed by the committee for direct cash transfers
c)    Identification of the schemes and programmes of the Government in which the process of direct transfer of cash to individuals can be adopted and formulated for the country
d)    The committee would be responsible for coordination of activities of all the departments, ministries and agencies that are involved in the process of transferring cash to make sure that a coordinated action for ensuring speedy roll-out of the cash transfers directly without delay across the country
e)    The committee would be responsible for specifying the timeliness on the cash transfers of the deliverables
f)    It would be responsible for reviewing the process for implementation of direct cash transfer as well as guide the mid-term corrections on it
g)    All shots of matter related to it

To assist the National Committee on the issue of Direct Cash Transfer, an Executive Committee for Direct Cash Transfer under the chairmanship of Prime Ministers' Principal Secretary is constituted along with the Secretaries of the concerned Ministries and the DG UIDAI. Convenor for this committee would be the Secretary of the Planning Commission.

The Executive Committee on Direct Cash Transfers would be responsible for:

a)    The Executive Committee would be responsible for development of propose after identification of the programs and schemes for which the direct cash transfers to Individuals can be opted for. These recommendations would be sent for consideration of the National Committee on Cash Transfers. It is also responsible for suggesting the extent and scope of cash transfer in every case.
b)    It would be responsible for preparation of strategies and its approval in form of action plans for speedy transfer of the Direct Cash on the areas highlighted and agreed upon, being in line with the deadlines set by the National Committee on cash transfers
c)    The Executive Committee would be responsible for coordination of activities between the ministries, departments and agencies, which are involved direct cash transfers by helping them in being able to transfer the cash directly across  the nation
d)    Direct cash transfers would be reviewed by the executive committee and it is responsible for offerings suggestions related to mid-term corrections, whenever necessary.
e)    It is responsible for handling all the matters what so ever would be delegated by the National Committee or something related to direct cash transfers
 
The Chairman of the Committee can call experts or officers to any meet of executive committee if required. Planning Commission, would be servicing both the National Committee and the Executive Committee and it may seek assistance from different ministries, departments and agencies of the Government, as required. An officer would be designated from the planning commission of the Joint Secretary Rank of the planning commission for coordinating and servicing the work of both the National and Executive committees.

For finalisation of the operational details and its implementation in relation to the designing of the direct cash transfer system and its smooth implementation and operations Mission Mode Committees would be constituted.

The notifications of the Mission Mode would be issued soon and it may constitute:

a)    To concentrate on the payment architecture, technology and IT issues a Technology Committee would be developed
b)    To ensure universal access to banks and assure a complete financial inclusion a Financial Inclusion Committee is being framed out
c)    Implementation Committee on Electronic Transfer of Benefits would be developed at ministry or department level for working out on the details of the transfer of the cash of every payment in the data base, this would also control a cash transfer rule along with the audit mechanism

The National Committee on Direct Cash Transfer’s composition is as follows:

a)   Prime Minister will head the committee as its Chairperson
b)   Finance Minister
c)    Minister of Communications & IT
d)   Minister of Rural Development
e)   Minister of Social Justice  & Empowerment
f)    Minister of Human Resource Development
g)   Minister of Tribal Affairs
h)   Minister of Minority Affairs
i)    Minister of Health & Family Welfare
j)    Minister of Labour & Employment
k)   Minister of Petroleum & Natural Gas
l)    Minister of Chemicals & Fertilizers
m)  Deputy Chairman, Planning Commission
n)   Minister of State (i/c) of Women & Child Development
o)   Minister of State (i/c) of Food & Public Distribution
p)   Cabinet Secretary
q)   Chairman, UIDAI
r)    Principal Secretary to PM will be the Convenor of the committee