Cash transfer in lieu of rice may be piloted in Visakhapatnam

The State government is exploring the possibility of replacing rice distribution with direct cash transfers to ration cardholders. Visakhapatnam is among the cities being considered for a pilot of the Central Bank Digital Currency (CBDC) system.

The district has 5.17 lakh ration cards covered by 642 ration shops, through which about 8,000 tonnes of rice are distributed every month. Complaints suggest that nearly 80% of cardholders in urban areas sell the rice they receive.

The Centre believes that direct cash transfers would allow beneficiaries to purchase essential commodities of their choice. The State government is examining the feasibility of introducing the system on a pilot basis in Visakhapatnam and a few other cities. However, a final decision on implementation, and on whether beneficiaries will accept the change, is yet to be made.

As part of the preparatory exercise, ration cardholders have been asked to link their Aadhaar numbers with their mobile numbers by October 15. They can approach village or ward secretariats, Civil Supplies officials or, in rural areas, the Tahsildar’s office.

District Civil Supplies Officer V. Bhaskar advised beneficiaries to verify their bank account details and correct any discrepancies by contacting their banks. “Accurate banking information is essential for smooth cash transfers,” he said.