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Students will receive money from Government directly in Bank Account

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The Directorate of Education in Delhi has directed all government and government-aided schools to achieve 100% Aadhaar seeding and fix account discrepancies for students receiving financial aid under Direct Benefit Transfer (DBT) schemes.

The government has decided that all Direct Benefit Transfer (DBT) payments will now be processed strictly through the Aadhaar Payment Bridge System (APBS). Traditional, account-based payment modes like NEFT or ECS will no longer be used for these welfare schemes.

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Despite previous instructions to update student details, discrepancies between bank records and student portal profiles have repeatedly caused digital transaction errors, leaving eligible students without their funds.

Ensuring 100% Aadhaar seeding helps make sure that financial benefits, such as school uniform subsidies, free textbooks and scholarships, reach the right person. It helps prevent fraud, avoids duplicate records and ensures that government funds are transferred to verified accounts without unnecessary delays.

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The exact total number of students scheduled to receive funds across all four schemes for the 2026–27 academic session has not been specified by the Directorate of Education in this specific directive. However, recent data from individual schemes highlights the following.

#1) For students up to Class 8, a total of 8,29,304 students are enrolled to receive the benefit. While 6,39,904 students have successfully received their cash transfers, roughly 1.89 lakh (189,400) students are currently on the “error list” waiting for their funds due to faulty account information.

#2) The directive also encompasses thousands of additional senior students (Classes 9 to 12) receiving textbook subsidies, as well as eligible beneficiaries under the EBM financial assistance and the Lal Bahadur Shastri Scholarship.

The new rule is expected to create huge crowds and long lines at local banks. Thousands of students and parents will rush to the bank at the same time to link their Aadhaar cards or withdraw their welfare money. This sudden rush will make banks very crowded and busy. As a result, people might have to wait for a long time in queues, and bank workers will have a lot of extra work to handle.

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To prevent this chaos, both the bank management and the government need to step in and manage the situation. The government should give banks extra time to finish the work and set up special help desks inside schools so parents do not have to crowd the branches. At the same time, bank management must open special counters just for students and deploy extra staff to handle the rush quickly. By working together, the government and the banks can make sure that poor families get their money easily without facing long hours of waiting in painful queues.

This sudden rush will also put an unfair burden on the bank staff, who will have to work extra hours and handle intense pressure to clear the backlog. Bank employees are already stretched to their limits, and forcing them to process thousands of urgent KYC links and cash withdrawals without extra support will lead to extreme burnout and errors. Therefore, both bank management and the government must step in immediately and find out a solution to this.

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Hellobanker Team

Hellobanker.in is India's leading banking and finance news portal. Our expert team covers banking policies, RBI updates, financial markets, and investment insights.
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