I agree with you views.
The initiative is perhaps one of the most transformation initiative that has ever happened in India. Let us understand what potential it has to the society at large.
1. It can really identify the real beneficiaries and give them the subsidy back
2. It has the potential to cap the spend by the govt on subsidies by reaching it direct to the end customers, resulting in saving to the Govt exchequer
3. Has the potential to curb corruption and eliminate any diversion of funds to the middlemen and babus by doing a direct bank credit.
4. Can eliminate the bogus gas connections and non existent names from the system, resulting in identifying true beneficiaries
What are the impediments :
1. Financial illiteracy of the customers. Significant number of people do not have bank account particularly in the rural areas
2. Significant pressure to open rural bank accounts and bank branches - severe stress on the financial system with no corresponding revenue benefits. Rural ATM's still do not exist to disperse cash
3. Aadhar enrolment - possibility of dilution of KYC
But knowing our babudom they might have already thought about getting the right access to info to make money at the point of disbursal of cash. Hence more information is required to strengthen to system. But this should not stop the idea.
There is quite a possibility of inefficient govt response to disbursing money. Unless there is a time bound SLA to refund the subsidy this will become a huge issue and could potentially derail such a good idea. The entire payment should be automatic and should not wait for a babu to sign a cheque with due controls in place. I would not be surprised if the babudom sits on it forever and never return the money resulting in huge protests and passing the buck to a defective system.
mouli
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