UNICEF-SEWA have done a study on unconditional cash transfers. It has found that cash transfers has led to an improvement in enhancement of financial inclusion and health.
Montek Singh Ahluwalia, Deputy Chariman Planning Commission was highly encouraged with the findings. He said that Direct Benefit Transfer (DBT) scheme will play a very important role in overall development of the country.
Government had started the ambitious direct benefit transfer (DBT) scheme on January 1, 2013.
Self Employed Women Association (SEWA) having membership of around 17 lakh entered into a partnership with UNICEF to pilot an unconditional cash transfer (UCT).
The study done in these rural areas covering 20 villages revealed that recipients of UCT were significantly more likely to contribute to their dwellings. The UCT entirely funded by the UNICEF also led to financial inclusion. The beneficiaries also began using their accounts for saving, rather than keeping money at home.