Financial Inclusion through Direct Benefit Transfer is one of the innovative and effective approach which helps to reach the financial assistance, services and subsidies to the real beneficiaries. The program was aimed at transfer of subsidies and cash benefits directly to the beneficiaries through their Aadhaar seeded bank accounts with an intention that crediting subsidies directly into the bank accounts would substantially reduce the leakages, and associated delays, owing to the flow of fund in a multi hierarchy of administrative offices till it reaches the end beneficiary. An enabling policy regime, supportive regulatory administration and proactive government initiatives have allowed the private and public sector entities in the financial sector to overcome longstanding challenges of exclusion of a large part of the population. In this research paper we will discuss about Direct Benefit Transfer scheme in India and how it has transformed social welfare.

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Keywords: Financial Inclusion, Direct Benefit Transfer, Subsidies, Aadhaar Seeded Bank Accounts.