Effectiveness of Direct Benefit Transfer (DBT) in Reducing Leakages

India’s welfare architecture has historically suffered from inefficiency, corruption, and systemic leakages that prevented public benefits from reaching intended beneficiaries. The introduction of Direct Benefit Transfer (DBT), supported by the JAM Trinity—Jan Dhan bank accounts, Aadhaar biometric identification, and mobile connectivity—marked a transformative shift in governance and welfare delivery. This paper examines the effectiveness of DBT in reducing leakages, improving fiscal efficiency, and promoting financial inclusion. By analysing welfare reforms in sectors such as food security, energy subsidies, employment guarantees, and agricultural income support, the paper argues that DBT has significantly strengthened state capacity and transparency while reducing corruption and administrative waste. However, it also highlights continuing challenges relating to digital exclusion, grievance redressal, and last-mile accessibility. The paper concludes that DBT represents a major institutional innovation in India’s welfare state, though its long-term success depends on balancing technological efficiency with human-centered governance.