23 Feb 2026·Source: The Indian Express

4 min

EconomyPolity & GovernanceSocial IssuesNEWS

Rajasthan Network Diverts Direct Benefit Transfer Funds From Government Schemes

Rajasthan network exploits PM-Kisan, state pension, crop loss schemes; 51 arrested.

A network operating in Rajasthan has been diverting funds meant for beneficiaries of direct benefit transfer (DBT) schemes, leading to the arrest of 51 people. The fraud targeted schemes such as PM-Kisan, state pension programs, and crop loss compensation. In one instance, a resident was asked to provide a photograph of his Aadhaar card in exchange for a cut of the funds. A mobile shop owner also shared his Aadhaar details after filling out a form. The investigation is ongoing to determine the full scope of the fraud and the methods employed to siphon off the funds.

This incident highlights the vulnerabilities in the DBT system and the potential for misuse of Aadhaar information. The ongoing investigation aims to uncover the extent of the fraud and the individuals involved, as well as to strengthen the security measures in place to prevent future occurrences.

This news is relevant to India's efforts to ensure efficient and transparent delivery of government benefits. It also underscores the importance of data privacy and security in the digital age. This is relevant for UPSC exams, particularly GS Paper II (Governance, Social Justice) and GS Paper III (Economy).

Key Facts

A network in Rajasthan diverted cash from government schemes.

Schemes affected include PM-Kisan, state pension, and crop loss schemes.

51 people have been arrested in connection with the fraud.

A resident was approached for his Aadhaar card photo in exchange for cash.

A mobile shop owner shared his Aadhaar details after filling out a form.

UPSC Exam Angles

GS Paper II (Governance, Social Justice): Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS Paper III (Economy): Government Budgeting, Inclusive Growth and issues arising from it.

Potential question types: Analytical questions on the effectiveness of DBT, challenges in implementation, and the role of Aadhaar.

In Simple Words

Imagine the government wants to give money directly to people who need it, like farmers or old people. Instead of giving cash, they put the money straight into their bank accounts. This is meant to be faster and stop people from stealing the money along the way.

India Angle

In India, many people rely on government help for things like farming, pensions, or if their crops fail. DBT is how the government tries to make sure that money gets to the right people, especially in villages where it's easy for corruption to happen.

For Instance

Think about when you get a refund from an online store. Instead of sending a check, they directly deposit the money into your account. DBT is like that, but for government benefits.

If someone is stealing money from these schemes, it means less help for the people who really need it. It's important to make sure the system is safe and fair.

DBT aims to help, but if it's not secure, the needy suffer.

A network in Rajasthan has been diverting cash from government schemes, including PM-Kisan, state pension, and crop loss schemes. In one instance, a resident was approached for his Aadhaar card photo in exchange for a portion of the scheme's cash. Police have arrested 51 people. A mobile shop owner also shared his Aadhaar details after filling out a form. The investigation is ongoing to uncover the full extent of the fraud and the methods used to divert the funds.

Expert Analysis

The recent fraud in Rajasthan involving the diversion of Direct Benefit Transfer (DBT) funds highlights the importance of understanding the mechanisms and vulnerabilities associated with such schemes. Several key concepts are crucial to understanding this issue.

The Direct Benefit Transfer (DBT) scheme, launched in 2013, aims to transfer subsidies and benefits directly to the beneficiaries' bank accounts, eliminating intermediaries and reducing corruption. The recent incident in Rajasthan shows that despite its potential, the DBT system is still vulnerable to fraud. Criminals are finding ways to exploit loopholes and divert funds meant for the intended recipients. This undermines the very purpose of DBT, which is to ensure that government assistance reaches the people who need it most.

Aadhaar, a 12-digit individual identification number issued by the Unique Identification Authority of India (UIDAI) after verifying the residency and biometric data of an individual, is often used as a means of identification for DBT schemes. In the Rajasthan case, individuals were asked to provide their Aadhaar details, which were then used to fraudulently access and divert funds. This highlights the risks associated with the misuse of Aadhaar data and the need for stronger safeguards to protect individuals' information. The incident underscores the importance of data privacy and security in the context of Aadhaar-linked schemes.

The PM-Kisan Samman Nidhi is a central sector scheme launched in February 2019 that provides income support to small and marginal farmers. Under this scheme, eligible farmers receive ₹6,000 per year in three equal installments. The fact that this scheme was targeted in the Rajasthan fraud indicates the scale of the problem and the potential for significant financial losses to the government and the intended beneficiaries. It also raises questions about the effectiveness of the existing monitoring and verification mechanisms.

For UPSC aspirants, understanding the DBT scheme, the role of Aadhaar, and the specific schemes targeted by the fraud is crucial. Questions may be asked about the objectives of DBT, its impact on reducing corruption, and the challenges associated with its implementation. Additionally, the ethical considerations surrounding the use of Aadhaar and the need for data protection are important topics to consider for the Mains exam. Understanding the vulnerabilities in the system and potential solutions is also important.

Visual Insights

Rajasthan: Location of DBT Fraud

Map showing Rajasthan, where a network diverted Direct Benefit Transfer (DBT) funds from government schemes. Police have arrested 51 people in connection with the fraud.

Loading interactive map...

📍Rajasthan

More Information

Background

The Direct Benefit Transfer (DBT) program was launched in India in 2013 to streamline the delivery of government benefits and subsidies directly to beneficiaries. The aim was to reduce corruption, eliminate intermediaries, and improve efficiency in welfare schemes. By transferring funds directly to the bank accounts of beneficiaries, the government aimed to ensure that the intended recipients received the full amount of the benefit. Aadhaar, the unique identification number issued to Indian residents, has been increasingly linked to DBT schemes to verify beneficiaries and prevent fraud. The use of Aadhaar is intended to ensure that benefits reach the right people and that there is no duplication or leakage of funds. However, concerns have been raised about the potential for misuse of Aadhaar data and the need for robust data protection measures. The PM-Kisan Samman Nidhi scheme, launched in 2019, is one of the major DBT schemes in India. It provides income support to small and marginal farmers by transferring ₹6,000 per year directly to their bank accounts. The scheme aims to supplement the financial needs of farmers and support their livelihoods. The recent fraud in Rajasthan highlights the vulnerability of such schemes to exploitation and the need for stronger safeguards.

Latest Developments

In recent years, the government has been focusing on strengthening the DBT system and improving its efficiency. This includes measures such as linking more schemes to DBT, enhancing beneficiary verification processes, and promoting financial literacy among beneficiaries. The aim is to ensure that DBT reaches all eligible beneficiaries and that there is minimal leakage or corruption.

The government has also been working on improving data protection and privacy in the context of Aadhaar-linked schemes. This includes measures such as implementing stricter regulations on the collection and use of Aadhaar data, enhancing security protocols, and raising awareness among citizens about their rights and responsibilities.

Looking ahead, the government is expected to continue its efforts to strengthen the DBT system and address the challenges associated with its implementation. This may include exploring new technologies such as blockchain to improve transparency and security, as well as strengthening collaboration between different government departments and agencies to prevent fraud and corruption.

Practice Questions (MCQs)

1. Which of the following statements is/are correct regarding Direct Benefit Transfer (DBT) schemes in India? 1. DBT aims to transfer subsidies and benefits directly to the beneficiaries' bank accounts. 2. DBT was launched in 2010 to eliminate intermediaries and reduce corruption. 3. Aadhaar is not used as a means of identification for DBT schemes.

A.1 only
B.2 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: DBT aims to transfer subsidies and benefits directly to the beneficiaries' bank accounts, eliminating intermediaries and reducing corruption. Statement 2 is INCORRECT: DBT was launched in 2013, not 2010. Statement 3 is INCORRECT: Aadhaar is often used as a means of identification for DBT schemes to verify beneficiaries and prevent fraud.

2. In the context of the recent fraud involving the diversion of PM-Kisan funds in Rajasthan, which of the following statements is NOT correct?

A.The fraud involved the misuse of Aadhaar details to access and divert funds.
B.The PM-Kisan scheme provides income support to small and marginal farmers.
C.The fraud highlights the vulnerabilities in the DBT system.
D.The investigation revealed that the fraud was limited to a single district in Rajasthan.

Show Answer

Answer: D

Options A, B, and C are correct statements based on the news. Option D is NOT correct because the investigation is ongoing to determine the full scope of the fraud, and it is not yet known whether it was limited to a single district.

3. Which of the following is the primary objective of the Direct Benefit Transfer (DBT) scheme?

A.To promote financial inclusion by opening bank accounts for all citizens
B.To reduce corruption and eliminate intermediaries in the delivery of government benefits
C.To increase the tax base by encouraging more people to file income tax returns
D.To provide employment opportunities to unemployed youth

Show Answer

Answer: B

The primary objective of the Direct Benefit Transfer (DBT) scheme is to reduce corruption and eliminate intermediaries in the delivery of government benefits by transferring funds directly to the beneficiaries' bank accounts.