A scheme of direct cash transfer into the bank account of beneficiaries of Public Distribution System instead of providing foodgrains is already being implemented on a pilot basis in the three Union Territories of Chandigarh, Puducherry and urban areas of Dadra & Nagar Haveli. The scheme of cash transfer of food subsidy is implemented as per provisions of the Cash Transfer of Food Subsidy Rules, 2015, notified under the National Food Security Act, 2013 (NFSA) which inter alia provides food subsidy in cash directly into the bank accounts of entitled households to enable purchase of entitled quantity of foodgrains from the open market. The scheme can be taken up in identified areas, subject to fulfillment of certain conditions regarding preparedness for its implementation like complete digitization and de-duplication of beneficiary database, seeding of bank account details in the digitized beneficiary database and availability of foodgrains in the open market. Identified area is defined under the Rules as State or Union Territory or any specified area within the State or Union Territory for which there is a written consent of the State Government for implementation of the scheme. It is therefore optional for the States/UTs to implement the cash transfer of food subsidy scheme or continue with distribution of foodgrains as per provisions of NFSA through fair price shops.

This information was given in a written reply by the Union Minister of State for Consumer Affairs, Food and Public Distribution, Shri DanveRaosahebDadarao in Rajya Sabha today.

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DJ/MS