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Ration Subsidy: Under new regulations, the government has decided to transfer ration subsidies directly into beneficiaries' wallets using the Digital Rupee. This initiative is set to launch in Chandigarh and Dadra & Nagar Haveli.

Ration Subsidy News: Chandigarh and Dadra & Nagar Haveli have become the two Union Territories where, starting August 14, 2026, the government will transfer ration subsidies directly to beneficiaries' wallets via the Digital Rupee. The central government's objective with this scheme is to curb the theft and misuse of food subsidies provided under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

What are the key features of the scheme?

The scheme's most significant feature is that it is "purpose-bound" or designated for a specific use. This means the digital currency transferred by the government into the wallet can only be used to purchase grains like wheat and rice. Beneficiaries will not be able to buy anything other than ration supplies with these funds.

Previously, under PMGKAY, ration subsidies were transferred to people's bank accounts. However, money deposited in bank accounts was often spent on other items or personal indulgences.

With the Digital Rupee transfer, the funds can only be spent at government ration shops. You will not be able to use the wallet balance for mobile recharges, alcohol, clothing, or other such purchases. The money in the wallet can only be transferred by scanning QR codes installed at ration shops. It is worth noting that this initiative was previously launched in Puducherry and Gujarat; following successful trials there, the model is now being implemented in these two Union Territories.

How will this wallet work?

To avail of the scheme, beneficiaries must first download and activate the PNB Digital Rupee application on their smartphones. Subsequently, they need to visit a nearby ration office or a designated camp to submit their Aadhaar-linked mobile number and complete the KYC and registration process. For any assistance or information, you may contact the department's toll-free helpline number at 1800-180-2068.

30-Day Time Limit

You must spend the ration funds credited to your wallet within one month; in other words, the amount remains valid for only one month. If a beneficiary does not purchase rations within this period, the funds will automatically revert to the government's account. Since every digital transaction generates a real-time digital record, it becomes easier for the government to track who has purchased rations and verify the proper utilization of the subsidy.