The UT administration is all set to switch to digital currency, and do away with direct bank transfers, for beneficiaries of the National Food Security Act (NFSA).
The project, originally scheduled for launch on June 12 by a Union Minister, is likely to be postponed due to incomplete onboarding of beneficiaries.
Chandigarh, along with Puducherry, will be among the first in the country to implement this system, which is expected to be scaled nationwide in the future.
The city has over 60,000 NFSA beneficiaries, but officials revealed that only about 35% have so far downloaded and linked their bank-associated mobile applications required to access the digital system. In light of the slow progress, the administration is conducting special camps to facilitate registration and app linkage for the remaining beneficiaries.
Under the new system, the subsidy amount will be issued as a digital coupon through a mobile application provided by the central government. The funds can only be used to purchase essential food items such as grains and pulses from designated ration shops.
Authorities have already onboarded 190 ration shops under the system and are aiming to expand the network to at least 500 shops before full-scale implementation. The digital currency provided under the scheme cannot be transferred to bank accounts or withdrawn as cash from ATMs. Officials said the move is aimed at ensuring that subsidies are utilised strictly for food purchases, addressing concerns that beneficiaries often divert cash transfers for other expenses under the current direct benefit transfer (DBT) system.
{{/usCountry}}Authorities have already onboarded 190 ration shops under the system and are aiming to expand the network to at least 500 shops before full-scale implementation. The digital currency provided under the scheme cannot be transferred to bank accounts or withdrawn as cash from ATMs. Officials said the move is aimed at ensuring that subsidies are utilised strictly for food purchases, addressing concerns that beneficiaries often divert cash transfers for other expenses under the current direct benefit transfer (DBT) system.
{{/usCountry}}To streamline the transition, the food supply department has deployed civil defence volunteers to carry out door-to-door verification of beneficiaries. These volunteers are collecting necessary documents and mobile numbers to complete the onboarding process. “Beneficiaries who fail to cooperate or do not complete the required formalities may face suspension of their monthly subsidy,” an official said.