DBT of LPG subsidies finally launched

Banks to engage in 'aggressive campaigning' to seed beneficiary accounts

Aadhaar based Direct Benefit Transfer (DBT) of LPG subsidies was launched in Mysore district on Monday. After considerable delays, since February, DBT of LPG subsidies was scheduled to be launched on June 1, which was further advanced by a month owing to poll code of conduct in the district.

Despite the delayed launch, more than 1.9 lakh customers are yet to seed their bank accounts and LPG consumer numbers with Aadhaar, which is crucial for the DBT of LPG subsidies. However, a three month grace period has been provided, to streamline DBT, during which all remaining beneficiaries will have to compulsorily seed their respective bank accounts and customer numbers. If customers fail to seed them, customers will have to cough out the full amount of Rs 900 per cylinder from October.

To prevent such eventualities, all customers have been urged to complete the seeding process as soon as possible.

Procedure

During the three month period, customers who are yet to seed their accounts, can buy LPG cylinders at a subsidised rate. The customers who have completed the seeding process, will receive the subsidy amount of Rs 435 per cylinder.

The subsidies, according to Unique Identification Authority of India (UIDAI), will be transferred within 24 hours after booking a cylinder. When the cylinder is delivered by gas agencies, the customer will have to pay Rs 900 per cylinder, following the transfer of subsidies.

Aggressive campaign

General Manager of Lead Bank, State Bank of Mysore, K Lakshmisha said that banks will aggressively campaign for the next 60 days to complete seeding of bank accounts and LPG customer numbers with Aadhaar.

Among the 5.18 lakh LPG customers in the State, the accounts of 1.97 lakh customers have been mapped with the National Payment Corporation. Barring them, banks will dispatch letters to about three lakh customers in the district. “Around 2.69 lakh letters have been dispatched to customers on Monday,” Lakshmisha said.

Lead Bank Manager, K Shivalingaiah said that text messages will also be sent to customers to complete the seeding process.

Use Drop Boxes

He said that the drop boxes kept at bank branches and LPG agencies to facilitate seeding have not been used by the consumers. The response for the drop boxes have been dismal. LPG consumers should utilise the facilities provided to them and assist in completing the seeding process as soon as possible, he said.

Recently, Chairman of UIDAI, Nandan Nilekani had attended a workshop in which bank officials had briefed about the challenges in DBT and the steps taken to overcome the issues.