The DBT scheme which launched by the Government of India during 2013 functions to decrease payment leakages through its removal of intermediaries while providing efficient bank-based disbursement of subsidies and welfare benefits to beneficiaries. The implementation of this scheme has produced important improvements regarding subsidy distribution transparency as well as increased accountability and enhanced operational efficiency.

1. Reduction in Leakages and Corruption
The DBT system eliminated siphoning and ghost beneficiary cases by making transfers bank-account linked through Aadhaar authentication. PM-KISAN and PAHAL LPG and PM-KISAN schemes together with PAHAL LPG program now make direct cash transfers that deliver funds directly to targeted beneficiaries.

2. Efficiencies and Financial Inclusion
Through DBT technology the government provides prompt payments in MGNREGA and PM Jan Dhan Yojana and National Scholarship Portal programs. Years after implementation DBT enabled the Jan Dhan-Aadhaar-Mobile trinity system which granted banking access to millions of people.

3. Fiscal Saving and Better Targeting
The federal government has achieved ₹2.73 lakh crore (2022 data) in fiscal savings through DBT that removed ineligible recipients and duplicate beneficiaries. Through enhanced identifying methods government programs now distribute benefits to appropriate individuals without waste of resources.

Problems and The Way Forward
The system continues to experience technological problems together with Aadhaar disqualification and digital interface issues while requiring stronger programs to address user complaints across the network.

DBT has brought revolutionary changes to subsidy distribution by reducing leakage and enhancing operational efficiency while universal access needs additional improvements for smooth use.