Telangana shifts fee reimbursement to DBT, students to receive funds directly in four annual phases
HYDERABAD: The Telangana government will transfer tuition fee reimbursement directly to students’ bank accounts under the Direct Benefit Transfer (DBT) system from the 2026–27 academic year. To support the new system, it will release ₹250 crore every month to welfare departments.
₹250 crore every month under four-phase schedule
The government has introduced a four-phase payment schedule for fee reimbursement. Under the new system, eligible students will receive the money directly in their bank accounts. Earlier, the government paid the reimbursement amount to college managements.
The government released the first monthly instalment of ₹250 crore for June on June 29. Welfare departments will transfer the funds to eligible students from Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), minorities, Economically Backward Classes (EBC) and Persons with Disabilities (PwD).
Moreover, officials said the government will continue releasing ₹250 crore every month throughout the academic year. This schedule aims to ensure timely reimbursement.
Funding pattern remains the same
Although the payment method has changed, the funding pattern will remain unchanged.
For SC students, the Telangana government will contribute 40% of the reimbursement amount, while the Centre will provide the remaining 60%.
Similarly, for ST students, the state will bear 25% of the cost and the Centre will fund the remaining 75%.
Meanwhile, the Telangana government will continue to bear the entire tuition fee reimbursement for BC, EBC and minority students.
GO 9 to streamline fee reimbursement
The government introduced the DBT system after issuing GO 9. The order aims to streamline the fee reimbursement process and remove confusion over tuition fee payments that affected students in recent years.
Additionally, the government has directed all welfare departments to implement the revised system on time and ensure that eligible students receive their reimbursements without delay.
