‘Direct Cash Transfer scheme and some entangled questions

While judging about government's cash transfer scheme, many queries are coming to my mind,

1. Will people use the money transferred to their account, by government, for purchasing food? Or will they divert it to some other needs?

2. What about the consequence of inflation on subsidy amounts?

3. Will our banking system be able to deal with the weight?

4. In many commercial (both government and public) banks minimum balance, required to maintain a savings bank account, is very high; will the banks happily alter the rules and serve rural poor with a smile?

5. Will rural poor be able to get better service from banks?

6. Once Cash transfer scheme become operational, subsidies for PDS supplies may go. Won't it swell the cost of food in general market?

For most of these questions I often reach an answer which kills my passion in otherwise supposed to be effective Aadhar based cash transfer scheme.

Sajeev.

References

1. Implementing Direct cash transfer in India - State is fighting back against corruption