new delhi in a bid to accelerate the creation of a cash transfer system for major subsidies that would cover the entire population prime minister manmohan singh on friday set up several committees including a ministerial panel to ensure a swift rollout a cash transfer system linked to aadhaar a biometric database of residents of india is at the heart of the governments attempt to target subsidies efficiently and reduce elimination and wastage in programmes like the public distribution system cheap cooking gas and fertilizer subsidy the announcement was billed by the pmo as a major step to improve government finances and tackle burgeoning subsidies long seen as a bane on indias economy by international rating agencies as well as domestic public policy experts and economists this is to be done in a fasttrack accelerated mode to be achieved in a timebound manner the idea is to move to a completely electronic cash transfer system for the entire population an official release said such a system can be used for transferring cash benefits such as mnrega wages scholarships pensions income support and health benefits cash transfers into individual bank accounts of beneficiaries has been set out as an important feature of the 12th plan that was recently approved by the planning commission the pmo said pilot projects have delivered encouraging results so far activists and a section of policy planners have opposed cash transfers in schemes like pds arguing that beneficiaries may not able or capable of accessing bank accounts and may also divert the money towards social ills like drinking instead of buying food grain government has largely come around to the view that continuing with current dispensations where indirect subsidies cannot be monitored and are cooking gas and food grain are sold in the black market is not sustainable with poor people not receiving benefits due to them suggestions such as making bank accounts of women recipients of cash transfers and a gradual rollout in rural areas with disadvantaged populations along with official intervention and support are under consideration also some pilot projects show that money was used for other services like health care but without significant misuse a national ministerial committee under the pm will have ministers for finance it social justice hrd minorities labour health food oil fertilizers planning commission unique identity authority this committee is expected to provide the political impetus to push cash transfers secretaries of concerned ministries will meet more frequently to coordinate action and ensure time lines are met an implementation mission and committees will oversee technology financial inclusion sanctity of database and controls with the rapid rollout of aadhaar now covering 20 crore people and rapidly growing to 60 crore and with the national population register covering the other half it is possible to move to a system of transferring cash benefits directly to the poor the release said government and rbi have issued guidelines to banks for implementation of cash transfers pilots are under implementation including in ap chhattisgarh punjab