Digitisation in Social Welfare: Balancing Benefits and Challenges

The Impact of Digitisation on Social Welfare Schemes in India

The shift towards digitisation in social welfare schemes has generated mixed outcomes in India. While advancements in technology have led to improved efficiency and transparency, there are significant concerns regarding its limitations, particularly for vulnerable populations.

1. Benefits of Digitisation in Welfare Schemes

• Improved Transparency: Digital platforms help minimize leakages and corruption by accurately tracking beneficiaries and resources. Notable examples include the Direct Benefit Transfer (DBT) system and MGNREGA payments.
• Faster Service Delivery: The use of digital records streamlines processes, ensuring timely distribution of benefits such as food grains under the PDS or cash transfers to beneficiaries.
• Accountability: The integration of Aadhaar allows governments to ensure targeted service delivery, effectively reducing duplication and fraud.
• Financial Inclusion: The Jan Dhan-Aadhaar-Mobile (JAM) trinity has facilitated access to bank accounts, enabling beneficiaries to receive welfare funds directly.

2. Challenges and Pitfalls

• Exclusion of Marginalised Groups: Several barriers exist that hinder access for vulnerable populations.
• Technological Barriers: In remote areas, a lack of digital literacy, internet connectivity, and smartphones limits access to digital schemes.
• Documentation Issues: The requirement to link Aadhaar with welfare schemes has resulted in excluding individuals without proper documentation, particularly among tribal, homeless, and migrant populations.
• Dependency on Infrastructure: Schemes like e-KYC in PDS and DBT are reliant on uninterrupted power supply and internet connectivity—luxuries often unavailable in rural settings.
• Temporary Withdrawal of Schemes: Overreliance on digitisation without adequate offline support can disrupt access to welfare, as observed in Odisha and parts of Jharkhand during PDS implementation.
• Gender Disparity: Women, especially in rural areas, frequently have limited access to phones, complicating their ability to utilize digital platforms for availing schemes.
• Delayed Benefits: Issues such as server failures, biometric authentication errors, and outdated information can disrupt essential services like pensions or food distribution.

3. Case Studies Beyond PDS

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): While digitisation has improved wage payments, delays in biometric verification and fund transfers hinder its effective operation.
• Health and Nutrition Programmes: Initiatives like Poshan Abhiyaan rely on digital tools for nutrition monitoring, yet their impact is often restricted by a lack of real-time data and connectivity in remote areas.
• Jan Dhan Yojana: Although the scheme has successfully expanded financial inclusion, the prevalence of dormant accounts indicates a need for greater awareness and follow-up.

4. Way Forward

• Hybrid Approach: Combining digital platforms with offline support ensures that no one is excluded. For instance, PDS beneficiaries in remote areas should have access to manual systems alongside e-KYC.
• Invest in Infrastructure: Enhancing rural internet connectivity, power supply, and banking facilities is crucial for the success of digital welfare initiatives.
• Digital Literacy: Implementing specialized programmes aimed at increasing digital awareness, particularly for women and marginalized communities, can bridge existing access gaps.

Frequently Asked Questions (FAQs)

Q1. What are the benefits of digitisation in social welfare schemes?
Answer: Digitisation enhances transparency, speeds up service delivery, and improves accountability in welfare schemes. It helps in tracking resources and beneficiaries, ensuring timely access to benefits.

Q2. What challenges are faced in the digitisation of welfare schemes?
Answer: Major challenges include technological barriers, documentation issues, and the exclusion of marginalized groups. These factors can prevent access to essential welfare services.

Q3. How does Aadhaar impact welfare schemes?
Answer: Aadhaar integration helps target service delivery and reduces fraud. However, it can also exclude those without proper documentation, limiting access for certain populations.

Q4. What is the role of financial inclusion in digitisation?
Answer: Financial inclusion through initiatives like the JAM trinity enables beneficiaries to access welfare funds directly, improving the efficiency of service delivery and reducing leakages.

Q5. What strategies can enhance the effectiveness of digital welfare programmes?
Answer: A hybrid approach combining digital and offline support, investment in infrastructure, and digital literacy programmes can significantly improve access and effectiveness in welfare delivery.

UPSC Practice MCQs

Question 1: What is a key benefit of digitisation in welfare schemes?
A) Increased corruption
B) Improved transparency
C) Reduced service delivery
D) Exclusion of beneficiaries
Correct Answer: B

Question 2: Which demographic faces significant challenges in accessing digital welfare services?
A) Urban professionals
B) Rural women
C) College students
D) Government employees
Correct Answer: B