'More Savings, Better Spending': What PM's Economic Advisory Council Says On Direct Cash Transfer To Women

As states continue to roll out and expand direct cash transfer schemes for women, a new working paper by the Economic Advisory Council to the Prime Minister (EAC-PM) suggests that these programmes are doing much more than providing financial relief. They are "helping women save more, participate in formal banking and spend more confidently on essential household needs".The paper, "Unconditional Women Cash Transfer Programmes in India: Evidence From Maharashtra And Odisha", examined two major welfare schemes -- Maharashtra's Mukhyamantri Majhi Ladki Bahin Yojana (monthly transfer of Rs 1,500 to eligible women) and Odisha's Subhadra Yojana (biannual instalments totalling Rs 10,000 per year). Using bank transaction data, the researchers studied how regular cash transfers affected the financial behaviour of women beneficiaries.The findings indicate that women receiving the benefits maintained higher end-of-the-month bank balances compared to earlier periods. This suggests that many beneficiaries did not spend the entire amount immediately.