It will be based on the payment platform of Aadhaar which is also to be rolled out speedily in line with the scheme.
These decisions were taken today at a meeting held by the Prime Minister's Principal Secretary Pulok Chatterjee with secretaries and representatives of various ministries and departments concerned.
As per the roadmap, the scheme will be rolled out in 51 districts from January one next year. It will cover 18 states and Union Territories by April next year and 16 other states and UTs by April one 2014.
"It was decided that all departments engaged in transferring benefits to individual beneficiaries will quickly move to an electronic Direct Cash Transfer system, based on an Aadhaar Payment Bridge/Platform," a PMO statement said.
"They will identify the schemes to move to this system and also prepare a roadmap with timelines so that the rollout is smooth and fast," it said.
Under the scheme, cash will be electronically transfered to the bank accounts of beneficiaries of subsidised items. This has been necessitated because of corruption and pilferage in distribution of the subsidised items.
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The list of schemes, roadmaps and timelines will be sent to the Planning Commission and PMO by November 20. UIDAI will set up a dedicated cell of technical experts in UIDAI to facilitate Aadhaar enabled Direct Cash Transfers and help individual ministries.
Department of Financial Services will go for universal financial inclusion through individual bank accounts for all in line with the roadmap. UIDAI will rollout Aadhaar speedily in line with the roadmap, it said.
Departments will work towards digitising their databases quickly, particularly at the state level, with the help of state governments, Department of IT and NIC to ensure convergence.