The notification, dated December 23, has been issued under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

In a bid to leakages and reduce wastage, the Central government began a pilot project in 2012 to transfer individual benefits to the beneficiary's bank accounts directly. This included MNREGA wages, scholarships and pensions. In 2016, the Aadhaar Act was passed to provide legislative support to Aadhaar and today direct benefit transfer is implemented in over 400 schemes by both Central and the State governments.

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