Delhi Cabinet Approves Higher Income Ceiling for Ration Cards
The Delhi Cabinet on Tuesday approved a proposal to increase the annual income eligibility limit for ration cards under the Public Distribution System (PDS) from Rs 1.2 lakh to Rs 2.5 lakh. This decision is expected to bring lakhs of low-income families within the ambit of the subsidised ration scheme.
The income ceiling was earlier set at Rs 1 lakh and later revised to Rs 1.2 lakh. The latest increase aims to expand coverage, taking into account the current economic context. Food and Supplies Minister Manjinder Singh Sirsa said, "Earlier, the income eligibility was very low. In today's context, even Rs 1 lakh annually is below minimum wage for a family. Keeping this in mind, the Delhi government has raised the limit to Rs 2.5 lakh so that more deserving families can benefit."
Introduction of CBDC-Based Ration Distribution
The government is also working on introducing a Central Bank Digital Currency (CBDC)-based ration distribution system. Under this model, the subsidy value of entitled ration will be digitally transferred to beneficiaries' CBDC wallets, allowing them to purchase foodgrains from authorised fair price shops.
Officials said the system aims to improve transparency and accountability through traceable transactions and reduced leakages. Pilot projects are already underway in Gujarat, Chandigarh, Puducherry, and Dadra & Nagar Haveli and Daman & Diu.
Sirsa said the digital currency would initially be usable at fair price shops. "The government will deposit digital currency into beneficiaries' accounts, which they can use to obtain ration. In the second phase, its use may be expanded to select private outlets. This will help check corruption and mismeasurement," he added.
How the CBDC System Will Work
An official said a cabinet note for the CBDC mechanism will be prepared and presented soon. Under the proposed system, instead of distributing subsidised grain directly, the government will transfer its value into beneficiaries' CBDC wallets. Purchases can then be made at authorised fair price shops using QR code or OTP-based payments after Aadhaar authentication through e-PoS devices.
Unlike direct benefit transfer (DBT), the CBDC amount will remain purpose-bound and can only be used to buy entitled foodgrains. "The CBDC-based model will enable real-time tracking, better audit trails, reduced disputes at fair price shops, and improved monitoring of subsidy utilisation," an official said.
Current Coverage in Delhi
Delhi currently has around 64.93 lakh beneficiaries covered through nearly 15.47 lakh ration cards and 1,943 fair price shops. The new income limit is expected to significantly increase the number of eligible families.
