Agriculture continues to be the backbone of the Indian economy, yet farmers often struggle with financial instability due to low and uncertain incomes. To address rural indebtedness and ensure timely financial support, the Government of Telangana introduced the Rythu Bandhu Scheme, a Direct Benefit Transfer (DBT) initiative that provides ₹10,000 per farmer annually in two instalments. The present study was conducted in Khammam district to assess the impact, constraints, and suggestions of beneficiaries under this scheme using an ex-post facto research design. A total of 440 respondents (220 beneficiaries and 220 non-beneficiaries) were selected through random sampling across 20 villages from four mandals. The results revealed that the insufficient amount of financial assistance per season (90.91%) was perceived as the major constraint, followed by untimely payment of instalments (66.82%) and diversion of funds by bankers toward loan repayments (60.45%). Operational issues such as poor online portal performance and difficulties in bank withdrawals also affected the scheme’s implementation. To improve its efficiency, respondents suggested that the Land Records Updation Programme (LRUP) should be executed accurately or re-surveyed (89.09%), investment support be provided before the commencement of the cropping season (83.18%), and assistance be aligned with the actual cost of cultivation (80.91%).