Electronic Benefit Transfer

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Definition: Electronic Benefit Transfer

Electronic Benefit Transfer is the way in which the food and cash benefits are given to the individuals by state government was started in U.S. but it spread word wide soon. Now even Indian government uses Electronic Benefit Transfer to make the transfers of benefits easier and without any problems. It is way of distributing the social welfare schemes among people by give a plastic card like normal debit card. In India it helps in transferring pension and cash benefits as well.

It reduces the pressure on the bank and since various accounts are made for various schemes so thus it reduces that problem as well. There are many schemes that state government to the people thus it increases convenience of government as well.

The procedure for the same is that when the individual sign the form for the need of food benefit, the level of benefit is determined and the card is given to that individual and every month or year the money is transferred to the card and the benefits can be used for the busying food from the authorized contractor. The individual is given pin so this makes the transaction easy and safe.


1) It keeps track as well – The individual to whom the transfer is done have personal information already saved so it helps the government to know how poor the individual is, the need, in case of death the details about the person who get the pension. Thus it keeps tracks of how much benefits are transferred at what date they are being used etc.

2) It reduces the cost and reduces time – the cost involved for keeping individual data is reduced by EBT and the time also have reduced drastically

3) The data is maintained online – all the data is maintained at one place and no manual keeping of data

4) The frauds are reduced – now it is easy to track the benefits and the individual it reduces the frauds from the point of the supplier and individuals as well.

5) It can spread to other services as well

Hence, this concludes the definition of Electronic Benefit Transfer along with its overview.

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