The Delhi government will credit digital currency to Aadhaar-linked bank accounts of ration card holders to enable them to purchase foodgrains and other essentials from fair price shops. This was stated by Food Supplies Minister Manjinder Singh Sirsa said on Tuesday.
Speaking to media, the minister said the Delhi Cabinet has decided to raise the annual family income cap for issuing ration cards to Rs 2.5 lakh per annum from the earlier 1.2 lakh.He said the new raised limit will enable lakhs of new beneficiaries to be covered under the public distribution system (PDS).
The Delhi government has cancelled around two lakh invalid ration cards, and fresh applications have been invited online.The government will introduce a Central Bank Digital Currency (CBDC)-based smart ration distribution system for greater transparency and consumer choice, the Delhi CMO said in a statement.
The CBDC-based PDS system refers to the use of digital currency as the mode for delivering food subsidy benefits to beneficiaries, rather than relying solely on physical foodgrain distribution through fair price shops (FPS) or unrestricted cash transfers into bank accounts, it said.Under the proposed CBDC-based PDS model, the Delhi government will calculate the subsidy equivalent of entitled foodgrains and transfer the amount into the beneficiary's CBDC wallet, it said.
The mechanism will provide beneficiaries with greater flexibility in choosing authorised outlets, real-time visibility of subsidy entitlement and transaction history, and a stronger grievance redressal framework through digitally traceable records, the statement noted.Sirsa said, earlier the income eligibility to apply for ration cards was Rs 1 lakh per year, which was subsequently raised to Rs 1.20 lakh.
Beneficiaries will then be able to purchase ration from authorised FPS outlets after authentication through Aadhaar/e-PoS systems, with all transactions digitally recorded and reconciled for greater accountability, it added. Sirsa said under the CBDC-enabled system, financial assistance for ration will be directly deposited into beneficiaries' accounts, enabling them to purchase ration as needed through digital currency at ration shops.This will enhance transparency and eliminate mismanagement in the system, he said.
The CBDC-based model will gradually be operationalised at ration shops and integrated with banking systems, including private banks in the future, the minister said. CBDC is a digital sovereign currency issued by the Reserve Bank of India and has the same legal status as physical currency, the CMO said.The cabinet decision follows the recent announcement by Chief Minister Rekha Gupta regarding the enhancement of the income ceiling for ration card eligibility in Delhi.
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