Under the National Food Security Act, all state governments in India have to identify households that are eligible for purchasing subsidized food grain from the Public Distribution System and provide them with ration cards. There are two types of ration cards under NFSA.
How To Convert Ration Card In BPL Card: Ration cards are an official document issued by state governments in India to households that are eligible to purchase subsidized food grain from the Public Distribution System (under the National Food Security Act). They also serve as a common form of identification for many Indians.
Priority ration card – priority ration cards are issued to households that meet the eligibility criteria set by their state government. Each priority household is entitled to 5 kilograms of food grain per member.
Antyodaya (AAY) ration cards are issued to “poorest of poor” households. Each AAY household is entitled to 35 kilograms of food grain.
Before the NFSA was enacted, there were three types of ration cards Above Poverty Line (APL) ration cards that were issued to households living above the poverty line (as estimated by the Planning Commission). These households received 15 kilograms of food grain (based on availability).
Below Poverty Line (BPL) ration cards that were issued to households living below the poverty line. These households received 25-35 kilograms of food grain.
Antyodaya (AAY) ration cards that were issued to “poorest of poor” households. These households received 35 kilograms of food grain.
The bank accounts and ration cards of eligible beneficiaries are linked to their Aadhaar numbers. A bank account can be enabled as AeBA by seeding (linking) it with an Aadhaar number. Seeding makes mapping information stored on the NPCI payment gateway that facilitates the subsidy payment. Seeding helps identify genuine and eligible beneficiaries and prevents duplicate and non-existent persons from registering. Users can link a bank account as a self-service option through ATM kiosks, the Internet, bank websites, telephone, or by providing a copy of the Aadhaar letter to a bank.
Prior to Aadhaar, the issues plaguing and derailing social security programs in India were caused by corrupt officials and middlemen manipulating paper records and stand-alone databases of social security services. Due to the lack of a unique identifier like Aadhaar, stand-alone databases cannot detect and eliminate duplicate or fraudulent beneficiaries. The most common modus operandi adopted to inflate the beneficiary list is by inserting duplicate entries, non-existent names, and the names of dead and non-eligible people. Attempts are then made to steal the social security benefits money, depriving genuine claimants.
Aadhaar-enabled service delivery (AeSD) prevents corruption in retail by directly crediting benefit money into the beneficiary’s bank account; this is called Direct Benefit Transfer (DBT). It eliminates middlemen and fraudulent, ineligible beneficiaries. In this way, Aadhaar saves billions of rupees of public money annually and enables poor people to access social security benefits.
Various financial and other services are being Aadhaar-enabled, called Aadhaar-enabled Service Delivery (ASD), in a phased manner. By 1 January 2014, half of India (289 districts across various states) had been covered by DBT for subsidized LPG. By August 2013, 6.3 million duplicate LPG connections were detected by Aadhaar and were cancelled. The national government saved $1 billion on reduced imports by mid-2013.
Applicant eligibility is checked by comparing the service delivery database with other databases. For example, PDS kerosene eligibility is checked by comparing the PDS database with the LPG database. The subsidy on kerosene allocation is reduced if the LPG subsidy is detected for that household.
Ration card eligibility is cross-checked with other related, Aadhaar-linked databases. This approach is designed to improve the audit trail, add efficiency and prevent corruption. It results in direct benefit access for eligible people and annually saves billions of rupees from corruption. Tangible benefits became visible from 2014; a report by UBS published in January 2014 showed Aadhaar DBT can save 1.2% of GDP.
The finance minister informed the Parliament during Vote on Account that as of 31 January 2014, under DBT ₹33 billion for 21 million LPG subsidy and ₹6.28 billion (628 crores) have been transferred for various social programs in 5.4 million transactions.