- Efficiency:
- Reduces the number of government departments involved in distribution.
- Lowers costs involved in the distribution process.
- Example: Saved over Rs. 10,000 crore annually in LPG subsidy.
- Transparency:
- Removes the possibility of leakages and diversion.
- Money goes directly to the intended beneficiaries.
- Reduces scope for corruption.
- Example: Aadhaar-based authentication for urea purchase.