Kerala welfare pensions: CAG had flagged problems in direct-to-home payments three years ago
Finance Department data also show Kerala has been spending crores of rupees every year on incentives paid to individuals who distribute the pensions to homes under DTH via the PACS route
The Kerala government has been distributing social security and welfare fund pensions using direct-to-home (DTH) system through primary agricultural credit societies (PACS) for some time now. However, three years ago, the Comptroller and Auditor General of India (CAG) raised concerns about the shortcomings of this direct-to-home (DTH) system.
The CAG's report, which was submitted to the Kerala Legislative Assembly in September 2023, highlighted issues with the DTH system, stating that it did not qualify as direct benefit transfer (DBT) since the payout was not made directly into the pensioners' bank accounts. The report also pointed out the possibility of fraud due to the absence of an automated beneficiary-wise acknowledgement, as only the signature or thumb impression of the beneficiaries was obtained as confirmation.
Furthermore, the report revealed instances where pensions were paid via DTH even after the pensioner's death. The government has also been paying an incentive of ₹30 per beneficiary to individuals who deliver the pensions to homes under the DTH route. In the year 2024-25 alone, the government spent ₹34.11 crore on these incentives.
In response to the CAG's recommendations, the UDF government has now decided to shift the distribution of these pensions to the DBT mode via Aadhaar-linked bank accounts in all cases except for those of "fully bed-ridden patients." As per a July 27, 2026 Finance Department order, the government will commence this process immediately. The decision comes as part of a larger plan to include more beneficiaries under the DBT mode, as suggested by the CAG.
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