Direct Transfer of Subsidy into Bank Accounts

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Cash transfer of food subsidy scheme is being implemented in Union Territories of Chandigarh, Puducherry and urban areas of Dadra and Nagar Haveli. This scheme is implemented as per provisions of the Cash Transfer of Food Subsidy Rules, 2015, which inter alia provides that the cash transfer scheme can be taken up in identified areas, subject to fulfillment of certain conditions regarding preparedness to implement the scheme. 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 scheme or continue with distribution of foodgrains as per provisions of NFSA through fair price shops.

This information was given by the Minister of State for Consumer Affairs, Food & Public Distribution Shri C.R. Chaudhary today in Rajya Sabha.

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