The RSBY prided itself in being a ‘Business Model’ which sustained the scheme. There was an inbuilt financial incentive for the public and private players to do what they ought to do. The insurance companies had an incentive to issue as many smart cards as possible because the payment to them was a multiple of the number of cards issued by them. Similarly, the hospitals were not chasing away the beneficiaries because they got compensated for the treatment given to the beneficiaries. It was indeed a win-win situation
