Kerala shifts welfare pensions to DBT, ends cooperative bank doorstep delivery

The Kerala government has decided to discontinue the distribution of social security and welfare pensions through cooperative banks, making Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts mandatory for all beneficiaries, except those who are completely bedridden.

According to an order issued by Additional Chief Secretary (Local Self Government Department) K.R. Jyothilal, the Finance Department has granted in-principle approval for disbursing all social security and welfare fund board pensions through the DBT mode. This effectively ends the existing system under which cooperative banks delivered pension amounts directly to beneficiaries' homes.

The government said the decision was taken after a detailed review of the current mechanism. Repeated reports of delays in remitting undistributed pension amounts, failure to update records on time, reconciliation issues, and instances where pensions were paid more than once to the same person due to incomplete implementation of Aadhaar-based payments were cited as reasons for the change.

The order also noted that the government was incurring incentive payments to cooperative banks for doorstep delivery of pensions. Continuing with the existing system could result in the State losing Central financial assistance for not fully complying with DBT norms, which mandate direct transfer of benefits to beneficiaries' bank accounts.

“The government has examined the matter in detail and has accorded in-principle approval for disbursing pensions through Direct Benefit Transfer to Aadhaar-linked bank accounts of all social security and welfare fund board pension beneficiaries, except those who are completely bedridden,” the order stated.

Under the new arrangement, cooperative bank employees will no longer deliver welfare pensions to beneficiaries' homes, except in the case of bedridden patients. These exceptions will continue to receive pensions through doorstep delivery to ensure that the most vulnerable are not excluded.

Kerala operates several social security pension schemes for the elderly, widows, persons with disabilities, agricultural workers, and other vulnerable groups. These are administered through welfare fund boards under various departments. The shift to DBT is expected to streamline payments, reduce leakages, and ensure timely crediting of pensions directly into the bank accounts of beneficiaries.

DBT is a key initiative of the Union government to transfer subsidies and benefits directly to citizens' bank accounts, linked with their Aadhaar (biometric identification) numbers. The system aims to eliminate intermediaries, reduce corruption, and enhance transparency.

The decision has been welcomed by some as a move toward greater efficiency, while others have expressed concerns about the accessibility of banking infrastructure for elderly and digitally less-literate beneficiaries in rural areas. The government has assured that bedridden individuals will be covered under the doorstep delivery mechanism and has directed officials to identify such beneficiaries.

The order is seen as a significant step in aligning Kerala's welfare delivery with national DBT norms, which could also help the State secure continued Central funding for its social security programs.