- Definition: DBT is a system where government directly transfers money to beneficiaries’ accounts.
- How it Works:
- Beneficiaries purchase products from the market at market price.
- Government transfers the subsidy amount directly into their Aadhaar-linked bank account.
- It leverages Jan Dhan accounts, Aadhaar, and Mobile (JAM trinity).
- Example: LPG subsidy (households buy at market price, subsidy transferred).