The central government is looking to connect customers’ bank accounts with their ration cards, according to a recent report. It’s worth mentioning that ration cards were previously linked to Aadhaar, and customers’ Aadhaar cards are already tied to their bank accounts through KYC processes.
The report indicates that the Union Ministry of Food and Public Distribution plans to suggest changes to the guidelines for ration distribution to facilitate this bank account linkage. On February 28, the Union Food Secretary met with state food secretaries to discuss this matter.
During that meeting, the Union Food Secretary brought up the idea of revising the 2015 guidelines on ration distribution control, sparking a lot of speculation. People are wondering if this amendment will lead to any significant changes in the ration system by connecting bank accounts with ration cards.
What might be included in these proposed changes? There are calls for the e-KYC form, filled out when issuing new ration cards, to not only link Aadhaar with the ration card but also to gather customers’ bank details.
Additionally, there’s a question about whether the central government intends to directly transfer subsidy funds to consumers’ accounts based on the prices of food items distributed through the ration system. This could explain why states are being asked to collect customers’ account information. Currently, under the National Food Security Act, around 81.35 crore people receive five kg of rice or wheat per person each month.