Summary of this article
Income limit raised to Rs 2.5 lakh
New ration card applications reopened
Digital rupee distribution system planned
The Delhi government has approved a major revision in the income eligibility criteria for the ration cards under the Public Distribution System (PDS). The annual family income limit has been increased from Rs 1.2 lakh to Rs 2.5 lakh, allowing a much larger section of low- and lower-middle-income families to access subsidised rations. This decision is expected to benefit plenty more households that were excluded before due to a difference in the income threshold.
Why the Government Took This Step
According to a report by Upstox, the officials have said that the income ceiling has changed in the present-day economic and financial environment. According to Delhi Food and Supplies Minister Manjinder Singh Sirsa, families that earn around Rs 1 lakh per year tend to struggle to meet basic living expenses. These revised limits aim to reflect the present-day income gaps and realities for the low- and lower-middle-income families. With this change, there are more deserving families who can avail this benefit.
Fresh Applications For Ration Cards
In light of these changes, the government has reopened the process for issuing new ration cards after several years. This process is made online for the registration of new beneficiaries and the inclusion of family members. These moves come after a large-scale verification exercise had created many new beneficiaries in the database.
Over Seven Lakh Invalid Cards Cancelled
While the audit was being conducted regarding the authentication of the ration distribution system, the Delhi government found more than 7.7 lakh ration cards that were invalid and incorrect. These cards were further cancelled. The verification drive had identified duplicate cards, deceased beneficiaries, people who were not collecting rations, and households that surpassed the income thresholds. This exercise was necessary to ensure that the government subsidies reach the genuine and eligible families.
Shift Towards A Digital Rupee-Based System
Another reform that was introduced was the announcement of introducing the Central Bank Digital Currency (CBDC), or digital rupee, for ration distribution. The government is planning to transfer the subsidy value into the beneficiaries’ digital wallets instead of distributing subsidised food grains. This way the beneficiaries can use these funds to purchase their ration from authorised fair shops.
Under this model, beneficiaries will receive digital currency in their registered wallets. The purchases will take place through the Aadhaar-authenticated devices using QR codes or OTP verification. Unlike the regular Direct Benefit Transfer (DBT), the digital rupee amount will remain restricted for purchases of rations only to avoid misuse of funds.
These twin reforms represent a series of changes that upgrade the food security framework in Delhi. By broadening the threshold for beneficiaries, the government aims to make welfare distribution more inclusive and transparent.
