India has implemented significant digital initiatives to streamline pension verification and welfare benefit distribution, with its digital life certificate system and Direct Benefit Transfer (DBT) program showing measurable results in improving efficiency and reducing fraud. The programs expand upon India’s broader push toward digital identity verification, which began with the launch of the Unique Identification Authority of India (UIDAI) and its biometric-based national ID system.
The digital life certificate system, known as Jeevan Pramaan Patra, enables pensioners to submit their life certificates using facial recognition technology on Android smartphones. The Department of Pension and Pensioners’ Welfare conducted Campaign 3.0 throughout November 2024, extending the initiative’s reach to 800 cities and towns across all districts. The implementation follows similar successful deployments of facial recognition for pension verification in other countries, demonstrating a growing global trend in using biometric technology for social security administration.
The DBT system has facilitated the transfer of over $450 billion to beneficiaries over the past eight years. “Over 51 ministries and departments in the central government deal with Direct Benefit Transfers,” said Finance Minister Nirmala Sitharaman. “This has saved around USD 40 billion from being lost to pilferage during this period, thanks to the elimination of ghost accounts and fraudulent transactions. This digital initiative is a superb lesson in improving transparency and efficiency, ensuring that every rupee is properly accounted for and preventing misuse of public funds.”
The system operates through integration with the Public Financial Management System (PFMS), enabling real-time tracking of funds from their release to final deposit in beneficiary accounts. The infrastructure supports the distribution of subsidies, pensions, scholarships, and other government benefits. The PFMS represents a significant advancement in India’s financial technology infrastructure, allowing for unprecedented transparency in government-to-citizen transactions.
The Aadhaar Payments Bridge System (APBS), while integral to the DBT infrastructure, has faced scrutiny regarding its transaction processes. A notable incident occurred in 2017 when LPG subsidies were incorrectly directed to Airtel payment banks, highlighting potential vulnerabilities in the system. The experience has led to enhanced security measures and verification protocols within India’s digital payment infrastructure, particularly in the integration of biometric authentication with financial transactions.
Sources: The Economic Times, The Economic Times, National Herald India
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