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Huge protest in Jharkhand against cash transfer scheme

Huge protest in Jharkhand against cash transfer scheme

In news:

Hundreds have protested against the Direct Benefit Transfer (DBT) scheme started by the government of Jharkhand by marching from the Katahal Mor area of Ranchi towards the Chief Minister’s house via Piska Mor.


  • The protest was organised jointly by civil society organisations and the major opposition parties of the state which have come together under the umbrella banner of Ration Bachao i.e. save public distribution system (PDS).
  • The civil society organizations include Right to Food Campaign, All India People’s Forum, United Mili Forum, Jharkhand Nagrik Prayas, among others. Political parties include Jharkhand Mukti Morcha, Congress, Jharkhand Vikas Morcha, Communist Party of India (Marxist) and Communist Party of India (Marxist-Lenin).

About the scheme:

  • DBT is a scheme started by Jharkhand on a pilot basis in early October last year in Rachi’s Nagri block. Under DBT, beneficiaries have to collect their food subsidy in cash from the bank before using it to buy rice from the ration shop at Rs 32 per kg. Earlier, they were able to buy rice from the ration shop at Re 1 per kg.
  • In January 2018, a survey organised by civil society organisations and coordinated by prominent economist Jean Dreze was conducted in 13 randomly-selected villages of Nagri Block to assess public reaction to the scheme.

Findings of the survey:

  • The 97 per cent of PDS cardholders surveyed were opposed to it. Nearly half of intended beneficiaries have been deprived of their food rations in the last four months. This is because have to spend on an average around 12 hours to collect the subsidy amount and then buy food from the concerned public distribution shop.
  • The sample households have an average 3.4 bank accounts in their families. But very few among them know which bank accounts receive cash subsidy. Respondents have also claimed that out of four installments, they had on an average received money worth only two. Respondents have bought rations only 2.5 times from ration shops in the last four months.
  • Banks are located on an average 5 km away from the respondents’ homes. At least 70 per cent of respondents have no way to find out whether their DBT money has come other than by going to the bank.
  • A whopping 97 per cent of respondents want the DBT system to be withdrawn in favour of the old system.


Direct Benefit Transfer or DBT is an attempt to change the mechanism of transferring subsidies launched by Government of India on 1 January 2013. This program aims to transfer subsidies directly to the people through their bank accounts. It is hoped that crediting subsidies into bank accounts will reduce leakages, delays, etc.