How the money is sent to the accounts of millions of farmers at once, know what is the technology behind it

The first step is to register the correct bank account details, IFSC, Aadhaar number and mobile number. This data is collected at both the portal (eg Kisan Portal or State DBT portal) at the center and the state level. Aadhaar-bank account linking and KYC verification are ensured that the money reaches the right person.

Data is cleaned before sending millions of records, delete duplicate, wrong account or wrong IFSC. Many times verification is done by mixing Aadhaar-database and bank records (Aadhaar-bank mapping) so that fail transactions are reduced.

The government or agency creates a master file, it has a bank, account, amount and payment code of every farmer. This file is in machine-readable format (CSV/Excel/XML) and is sent to the bank/payment service provider.

National platforms work to send a large number of payments: PFMS / DBT portals e-ministry and record-keeping of public funds payments. Nach (National Automated Clearing House) for large vulu and volume bank-to-bank transaction. APBS (Aadhaar Payment Bridge System) provides Aadhaar-based payment routing. These network banks and payment agencies connect and make funds clear and set.

When the payment file goes to the bank, the payment switch of the bank will be through NEFT/RTGS/IMPS or Nach. Large volume credits are often sent to Nach/ACH batch; Time-sensitive amount can also go from IMPS/RTGS. Later the underlying creator is done through the Reserve Bank or Clearing House.

Banks send back the status of both successful and unsuccessful transactions. In the government’s system, there is a reconstruction, whose money has come, whose money failed and what is the process of replacement. SMS/alerts are sent to the beneficiary in select cases.

These massive transactions require encryption, digital signature, multi-layer authentication and logging. Banks and portals prevent wrong use through fraud detection algorithm, limit checks and random audit. This entire system delivers money in a big way fast and economical. For this, middlemen need less and transparency increases. But if there is no correct data, strong security and effective recording, then there is also a risk of wrong accounts or fraud.