The banking sector in India is a key player in achieving inclusive growth as well as financial inclusion. The Direct Benefit Transfer system is an experiment in delivering services to citizens. It provides the guarantee that the funds are reaching the accounts of the beneficiaries. The RBI has started giving license to payment banks which will reach out to people in rural areas. This is an important step towards Direct Benefits Transfer Schemes under Financial Inclusion. The study assesses the impact of DBT (PAHAL) Scheme in Direct Benefits Transfer Schemes. The deployment of DBT system to DBTL has led to simplification of processes and operational efficiency as well as transparency and accountability in implementation of the scheme, inclusion and convenience of the beneficiaries and timely payment of cash benefits into the beneficiaries’ accounts.