Direct Cash Transfers will cut down corruption: Raghuram Rajan
The Governor of Reserve Bank of India, Mr. Raghuram Rajan, vociferously supported Direct Cash Transfers (DCT) to the poor, saying this would help curb corruption by breaking the “cycle of dependence“. The DCT system involves the payment of subsidies directly into the bank accounts of beneficiaries, exscinding the intermediaries.
Rajan insisted that the direct transfer of benefits to cut down leakages in the system. The Narendra Modi government is also said to be pondering over the ways in which the DCT system, rolled out as a pilot project by the previous government, can be made more effective.
According to Rajan, financial inclusion and direct benefits transfer can be a way of relieving the poor from dependency on inefficiently delivered public services, and thus indirectly from the dishonest politician. He hopes that the system will help the emancipation of poor from poverty and towards true political independence.