THE ROLE OF DIRECT BENEFIT TRANSFER IN PROMOTING FINANCIAL INCLUSION IN VIDARBHA
DOI:
https://doi.org/10.69980/27pfd889Keywords:
Direct Benefit Transfer, Financial Inclusion, Banking Usage, Rural Finance, Welfare Transfers, DBT Beneficiaries, VidarbhaAbstract
Direct Benefit Transfer has emerged as an important tool of welfare delivery in India as it can transfer government welfare directly to the bank accounts of beneficiaries. In addition to increasing transparency of welfare distribution, DBT has been linked to more people engaging with formal financial services. This study focuses on the DBT's contribution towards financial inclusion of the beneficiaries in the Vidarbha region of Maharashtra. The study employs descriptive quantitative research with primary survey data from 400 beneficiaries of the DBT and secondary data of the DBT fund transfers and transactions volume from 2019-2020 to 2023-2024. Descriptive statistics, paired sample t-tests, chi-square tests, one-sample t-tests and effect size interpretation are used to analyze the data. The findings reveal that average annual income and average savings rose significantly. The paired sample t-test results show that there were statistically significant differences between the income and savings before and after DBT. There was also high level of consensus among the beneficiaries that DBT contributed favourably to the financial security and utilization of banking services. No significant associations were found between occupation and self-reported financial stability or financial services use, indicating that DBT financial inclusion outcomes were experienced across occupational groups. In conclusion, the study found that DBT can play a role in promoting financial inclusion in Vidarbha by enhancing the engagement of beneficiaries with the banking sector, their perception of financial stability and their savings habits among the rural and semi-urban beneficiaries.
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