Puducherry is going to become first Union Territory where on trial basis, scheme for crediting cash through credit in bank accounts is going be introduced instead of rice which is being distributed through Public Distribution System. In the next few weeks, over 3,30,000 ration card holders would be getting Rs. 300-400 in lieu of their monthly quota of rice after the list of such ration card holders is validated and their bank accounts are linked with Adhar Cards. In this scheme, the beneficiary would be free to spend the money on anything and not necessarily grains. It is most ambititions programme of central government to distribute cash in place of grain in the union territory of Puducherry.
After cash transfer starts under the National Food Security Act beneficiaries in Puducherry would receive 10 Kg rice and 5 Kg wheat under the local scheme and Rs. 300-400 in their bank accounts from central government.
The Union Food Ministry has said that in the states where National Food Security Act is in force, rice is sold at Rs. 3 per Kg, wheat at Rs. 2 per Kg and coarse serial at Rs. 1 kg
This cash distribution would be on trial basis and if required success is achieved, the next Union Territory would be Chandigarh where this scheme may be launched.