The government has changed its tack for identifying beneficiaries as it prepares to introduce cash subsidies for cooking gas from next months. With over 14 crore subscribers for LPG,the finance ministry has decided that beneficiaries should directly approach the banks for seeding of Aadhaar numbers to their bank accounts.
Considering the large number of beneficiaries for the direct benefit transfer for the LPG,it has been decided that the beneficiaries would approach the banks with documents of their Aadhaar Number. The banks would seed the Aadhaar into the beneficiaries bank account, the finance ministry has said in a circular to public sector banks,adding that this should be done at the earliest. Seeding of Aadhaar number to the bank account is essential for the government to identify beneficiaries.
This is in contrast to the governments earlier approach while rolling out the first phase of the direct benefit transfer DBT scheme in 43 districts,when camps were set up in the targeted areas. Beneficiaries could go and enroll for Aadhaar numbers and provide details of their bank account or post office for transferring of the cash subsidy.
Everyone who buys LPG gets a subsidy and is a beneficiary. Given the huge numbers,this would be a more efficient and direct way of seeding Aadhaar numbers into bank accounts, said a senior official.
Consumers are entitled to nine subsidised LPG cylinders and with the implementations of the DBT,the government will transfer the Rs 435 per cylinder subsidy directly instead of giving it to oil companies. Annually,this would amount to about Rs 4,000 per year by the government to each household as a cash transfer enabling them to buy LPG at market rates. The large consumer base for LPG subsidy was also highlighted by the PMs principal secretary Pulok Chatterji in his letter to petroleum secretary Vivek Rae.