3-children cap, spending curbs: How Delhi cash scheme for women is different

The scheme differs from conventional cash transfer programmes in another way: beneficiaries will not receive the money directly into their bank accounts. Instead, they will have to choose between investing the entire amount in a Recurring Deposit (RD) or Fixed Deposit (FD), or receiving part of it through a Central Bank Digital Currency (CBDC) wallet.

Rekha Gupta

Two ways to receive the benefit

Beneficiaries will have two options. Under the first, Rs 1,000 will be credited to a CBDC wallet each month for household expenditure, while Rs 1,500 will automatically be deposited into an RD or FD account. If the beneficiary opts for the second option, the entire sum of Rs 2,500 will be invested every month in an RD or FD, building a larger corpus over time.
A senior government official said the two-option structure had been designed to give beneficiaries “flexibility while encouraging both immediate financial support and long-term financial security”. “This ensures that alongside meeting immediate needs, beneficiaries also build a savings corpus over time,” officials said. “Alternatively, beneficiaries who wish to maximise their long-term savings may choose to receive the entire Rs 2,500 every month in an RD/FD. This option allows them to accumulate a larger amount with interest over the duration of the scheme. The objective is to empower women with choice while promoting financial resilience and asset creation,” officials added.

Another senior official said the government has shortlisted banks and will award the work to the bank offering the highest interest rates on RD and FD deposits. The RD or FD accounts will be opened in beneficiaries’ names, and passbooks will be issued to them.

CBDC wallet, spending curbs

The CBDC wallet comes with spending restrictions. According to the scheme’s guidelines, it will operate with a “negative list” that blocks purchases of specified goods and services. The money cannot be used to purchase alcoholic beverages, tobacco products, narcotic drugs and psychotropic substances, lottery tickets, gambling and betting services, or any other goods or services prohibited by the government from time to time.

Officials said the CBDC wallet had been designed to ensure that government assistance is used for constructive household expenditure rather than “harmful or socially undesirable purposes”. Accordingly, the wallet will be configured with a negative list that digitally blocks transactions related to specified categories of goods and services.

“The restrictions are enforced technologically through the CBDC platform itself, meaning transactions falling under these prohibited merchant categories will not be permitted. All other legitimate day-to-day household purchases and permitted goods and services can continue to be made using the wallet,” officials said.

Registration from August 1

The registration portal for the scheme will open on August 1. “The government aims to release the first instalment on the occasion of Raksha Bandhan (August 28) to eligible beneficiaries,” Chief Minister Rekha Gupta announced.

According to information shared by the Chief Minister’s Office, the scheme will cover women aged between 21 and 60 years whose annual family income is less than Rs 2.5 lakh. The scheme will initially be implemented for three years from the date it comes into effect and may continue thereafter with suitable modifications, Gupta said.

The Chief Minister said the entire process would be conducted online through the Delhi Lakshmi Yojana portal, with a district-level mechanism in place for scrutiny of applications, final approvals and speedy grievance redressal.