Cash Transfers as a relief during Covid-

19 in India:
Ever since the pandemic has spread, much has been written about the people who have
been affected by the same in rich countries but, not much is being covered about the poor
countries which are facing a lot more than just Covid-19. Considering India specifically, the
first image that is being shown widely when we talk about Covid-19 is a villager or a poor
person trying to get back to his home safely. This image resonates in the mind of every
aware citizen which is paradoxical to the image of a doctor treating the patients in some
other country.

With the whole economy being shut, the fragility of the Indian labour market is clearly
visible and for the same International Labor Organization has predicted that 400 million
people in India might fall into poverty traps. Following the lead of the danger hovering over
the country's head, cash transfers to people currently below the poverty line and the people
vulnerable to fall below soon seem like the best policy measure available. In most cases,
these cash transfers will allow people to purchase what they want: whether it is food grain,
oil, medicine, recharge on the mobile phone or a railway ticket home. Cash in hand also
gives vulnerable people a little more confidence to deal with the many uncertainties of life
during a crisis. (Also, considering the fact that we are facing a pandemic situation, the cash
transfers to be made should be unconditional in nature which would have a cost effect on
the government right now but can be scraped off later.)

Also, to acknowledge the government’s efforts on the same, on 3 April 2020, one of the
world’s largest cash transfer scheme was announced. This scheme included deposits of over
Rs. 30,000 crores into the accounts of women Jan Dhan account holders. Rs. 5,000 crores
were also deposited into the accounts of households with LPG connections under the
Ujjwala scheme benefitting nearly 8 crore poor households across India. Thus, following the
reports since then, it has been observed that India has been more efficient in transfers to
citizens as compared to the US where the cheques are being sent out via mail.