Direct Benefit Transfer

The Aadhaar number, due to its uniqueness property, serves as a natural financial address for sending payments to accounts of beneficiaries through the Aadhaar Payments Bridge (APB). The Aadhaar authentication system allows the identity of a resident to be authenticated in real-time in a trusted manner during last-mile payments transactions using MicroATMs.

Using Aadhaar as financial address gives ‘end to end’ traceability of an individual’s entitlement i.e. the Government ‘puts in’ money using an Aadhaar number and the beneficiary ‘takes out’ his money using his Aadhaar number at a microATM through the Business Correspondent (BC) model.

When Aadhaar is used as financial address, the bank account details need not be added into the beneficiary database. Aadhaar is the only ‘key’ that is required to send money to the bank account through the Aadhaar Payments Bridge (which translates Aadhaar number to the bank/ bank account).

DBT Handbook