Bihar Election 2025: How instant cash transfers are winning hearts and votes faster than campaign speeches

In Bakhtiyarpur’s Machariyawa village, Usha Devi couldn’t hide her relief when Rs 10,000 from the Mukhyamantri Mahila Rojgar Yojana and the revised old-age pension of Rs 1,100 arrived directly in her bank account. For her, the process was instant and seamless, no middlemen, no delay.

A few districts away in Vaishali, Gudiya, another beneficiary, checked her balance at a local cash point. “Maybe because of the election the payment is delayed, otherwise it always comes on time,” she said, confirming that she too received Rs 10,000 and earlier COVID-19 assistance through the same channel.

Across Bihar, stories like these are everywhere. For lakhs of women, direct benefit transfers (DBTs) have changed how government aid feels, instant, visible, and empowering. The money, credited within weeks of announcements, has blurred the line between policy promises and delivery.

From Promises to Payouts: Why Direct Transfers Are Politically Powerful

Unlike schemes that rely on layers of bureaucracy, like the PM Awas Yojana for building pucca houses, cash transfers need no local approvals or paperwork delays. Beneficiaries feel the impact immediately, which is exactly why they are becoming political game-changers.

Schemes routed through panchayat officials often get delayed by verification processes and favouritism. But DBTs, enabled by the Jan Dhan–Aadhaar–mobile (JAM) trinity, have become the fastest way for governments to reach voters before polls.

This speed has made opposition parties anxious. The Rashtriya Janata Dal (RJD) recently petitioned the Election Commission to stop the next instalment of Rs 10,000 scheduled for 7 November, just four days before Bihar’s second phase of voting. RJD MP Manoj Jha argued that the timing could influence voters.

The JAM Revolution: How Aadhaar and Jan Dhan Changed the Game

The rise of DBTs owes much to the Modi government’s 2014 push for universal bank access through Jan Dhan accounts and Aadhaar linkage. Initially seen as a financial inclusion mission, it quickly became a political tool for welfare delivery.

Interestingly, Odisha was the first to capitalise on this model. The Naveen Patnaik-led BJD government began transferring money directly to farmers even before the Centre’s PM-Kisan scheme. It took some persuasion for Prime Minister Narendra Modi to replicate it nationally ahead of the 2019 general elections.

Under PM-Kisan, farmers receive Rs 6,000 annually in three instalments, a move many analysts credit as one of the key factors behind BJP’s sweeping 303-seat victory in 2019.

Cash and Confidence: Why Small Amounts Still Win Big Votes

For small farmers like Binay Paswan from Nalanda, these transfers mean more than just numbers. “It’s not a huge amount, but it helps me buy seeds and fertiliser. The additional Rs 3,000 promised by NDA will make a real difference,” he said.

Psychologically, the sense of receiving direct financial support builds trust. It gives beneficiaries a tangible reason to believe that the government “cares”, something that campaign rallies alone cannot achieve.

A New Political Formula: From Bihar to Maharashtra and Beyond

Bihar isn’t an isolated case. Across India, cash-transfer schemes have become the new political currency.

The BJP’s Ladli Behna Yojana in Madhya Pradesh credited women’s accounts before the 2023 elections, helping the party retain power. In Maharashtra, the Ladki Behin Yojana played a similar role for the NDA in 2024. Meanwhile, Congress’s Gruha Lakshmi scheme in Karnataka helped the party secure a comeback by directly transferring Rs 2,000 monthly to women heads of families.

These programmes share a common formula: real-time visibility of benefits and emotional connection through money-in-hand impact.

The Future of Welfare Politics: Cash is King

India’s welfare model is evolving fast. Instead of paper-based promises or delayed subsidies, governments are turning to instant gratification through direct bank transfers. For voters, this means reliability and speed; for politicians, it’s a near-instant return on political goodwill.

With elections approaching in several states, the race to deliver faster and fatter DBTs has just begun. Whether it’s women empowerment schemes or farmer aid programmes, cash in account has replaced benefit on paper as the new face of Indian welfare, and, increasingly, Indian politics.

Inputs from TOI