Direct fund transfers helped save govt ₹5 crore from leakages, says PM Modi at India Mobile Congress | Here is the tutorial | Today’s news
Prime Minister Narendra Modi on Thursday said almost ₹Under the old system, government institutions may have leaked Rs 5 lakh crore, arguing that India’s Direct Benefit Transfer (DBT) mechanism helped ensure funds reached the intended beneficiaries, PTI reported.
Addressing the India Mobile Congress 2026, Prime Minister Modi highlighted India’s experience in digital governance and said almost ₹50 lakh crore was transferred directly to beneficiaries through DBT, with the funds reaching bank accounts linked to mobile devices.
‘ ₹5 million crores would go to leaks.
Prime Minister Modi said that the government was able to almost prevent ₹5,000,000 million dollars from falling into the “wrong hands” using digital direct transfer systems.
He said the same amount could have been lost to leaks if the earlier system had continued.
“If the old system had prevailed, ₹5 lakh crore of the government would get leaked and fill the pockets of such people,” the PM said, according to PTI.
He added that the money is now reaching the rightful beneficiaries and being used for the intended purposes.
PM generally refers to the pre-DBT welfare delivery system where government benefits/subsidies often passed through multiple layers or intermediaries before reaching the intended recipient.
Now, with the help of technology – especially mobile linked bank accounts – recipients receive money directly into their bank accounts.
The Prime Minister spoke about the wider role of technology in improving trust and the delivery of public services. Earlier in his speech, he said that mobile phones have evolved beyond communication devices and become important tools for managing and providing public services.
PM says he is determined to stop ‘wrong practices’
Prime Minister Modi also linked the reduction in leakages to his government’s efforts to stop what he described as “improper practices”.
“Now tell me, those whose ill-gotten gains have stopped, will they love Modi? Did I do the right thing or not? Should it be done or not? Should all these bad practices be stopped or not?” he said.
“No matter how much they scream or shout, I’ve made up my mind and I’m going to do it,” the prime minister added.
The Prime Minister said that under the earlier system, government funds could end up lining the pockets of people who benefit from such leakages.
PM highlights PM-KISAN transfers
The Prime Minister also cited PM-KISAN Samman Nidhi as an example of how direct digital transfers can reach beneficiaries.
PM Modi said more than ₹As part of the program, 4 million million crowns were deposited into the bank accounts of farmers. The amount is transferred every four months, with farmers receiving payment messages on their mobile phones, he said.
The remarks came as Prime Minister Modi highlighted India’s transition to a digital economy and the growing role of technology in governance at the India Mobile Congress 2026.
He said technology can only reach scale if it gains public trust, where citizens want to know if a message is genuine, a payment is safe and their personal information is safe.
