India’s cash transfer schemes a ‘logistical marvel’, says IMF

India’s cash transfer schemes a ‘logistical marvel’, says IMF

Mauro also said that there are other examples around the world to learn from.

The International Monetary Fund (IMF) has hailed India’s direct cash transfer and similar social welfare schemes that are backed by technology as a “logistical marvel”. It said there is a lot to learn from the country that has used the power of technology to address critical issues.

“From India, there is a lot to learn…In fact, just because of the sheer size of the country, it is a logistical marvel how these programmes that seek to help people who are at low-income levels reach literally hundreds of millions of people,” Paolo Mauro, deputy director of the fiscal affairs department of the IMF said on Wednesday.

“…one thing that is striking is the use of the unique identification system, the Aadhaar,” he said.

Official data showed that more than Rs 24.8 trillion has been transferred through direct benefit transfer (DBT) mode since 2013. Of this, the transfer of Rs 6.3 trillion took place in FY22 alone, when, on an average, about nine million transactions were processed daily.

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Mauro also said that there are other examples around the world to learn from. “We have examples from pretty much every continent and every level of income. If I look at the case of India, it is actually quite impressive,” he said.

Vitor Gaspar, director of the fiscal affairs department of the IMF, said that India is “one of the most inspiring examples of the application of technology to solve very complicated issues of targeting support to the people who need it most”.

“And also in Africa, there are very many examples of innovation, which is relevant and inspiring as well. So, the exchange of experiences that Paolo was talking about is something that we are trying to organise, and the amount of learning that can take place is actually quite surprising. There is a lot going on in India, in Africa, and in other parts of the world,” Gaspar said.

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