Prime Minister Narendra Modi on Thursday said nearly ₹5 lakh crore could have gone into government leakages under the old system, arguing that India’s Direct Benefit Transfer (DBT) mechanism has helped ensure funds reach their intended beneficiaries, PTI reported.
Addressing the 2026, highlighted India’s experience with digital governance and said nearly ₹50 lakh crore had been transferred directly to beneficiaries through DBT, with funds reaching mobile-linked bank accounts.
PM Modi said the government had been able to prevent nearly ₹5 lakh crore from going into the “wrong hands” through the use of digital systems for direct transfers.
He said the same amount could have been lost through leakages had the earlier system continued.
“Had the old system prevailed, ₹5 lakh crore of the government would have gone into leakages, filling the pockets of such people,” the PM said, according to PTI.
He added that the money is now reaching and being used for the intended purposes.
The PM is broadly referring to the pre-DBT welfare-delivery system, where government benefits/subsidies often passed through multiple layers or intermediaries before reaching the intended beneficiary.
Now, with the help of technology — mainly mobile linked bank accounts — the beneficiaries are receiving the money directly in their bank accounts.
The prime minister was speaking about the wider role of technology in improving trust and delivery of public services. Earlier in his address, he said mobile phones had evolved beyond being communication devices and had become important tools for governance and the delivery of public services.
PM Modi also linked the reduction in leakages to his government’s efforts to stop what he described as “wrong practices”.
“Now tell me, those whose ill-gotten income has stopped, will they love Modi? Did I do the right thing or not? Should it be done or not? Should all these wrong practices be stopped or not?” he said.
“No matter how much they shout or scream, I have made up my mind, and I will get it done,” the prime minister added.
The Prime Minister said that under the earlier system, government funds could have ended up filling the pockets of people benefiting from such leakages.
The PM also cited the PM-KISAN Samman Nidhi as an example of how direct digital transfers can reach beneficiaries.
PM Modi said more than ₹4 lakh crore had been deposited into farmers’ bank accounts under the scheme. The amount is transferred every four months, with farmers receiving messages on their mobile phones about the payments, he said.
The remarks came as PM Modi highlighted India’s transition towards a digital economy and the growing role of technology in governance at the India Mobile Congress 2026.
He said technology can achieve scale only when it gains public trust, with citizens wanting to know whether a message is genuine, a payment is safe and their personal data is secure.
