LPG Subsidy – Golden Opportunity for ePayments


Is your Bank ready to be the innovator in designing a Safe ePayment mechanism for the subsidy transfer?


The Manmohan led Government  has taken a step in capping the subsidized LPG cylinders to 6 per family, per financial year. I am sure; a strategy is already in place for its efficient implementation.


07 Points to ensure Congress Party remains on the top of the Aam Aadmi’s mind.


01)  Link the AADHAAR card to the Gas connection.

02)  Full price of the Gas cylinder to be collected at the time of the Gas cylinder delivery, irrespective of whether it is under subsidized quota or non- subsidized quota.

03)  No need to verify the AADHAAR bio-metrics at the time of the Delivery.

04)  The subsidy amount to be disbursed to the AADHAAR linked Basic Bank  Account in two cycles of 15th and 30th every month.

05)  The whole process to be automated with minimal human intervention.

06)   Once the status is updated as ‘Delivered’, the subsidy transfer process should commence.

07)   As the Oil companies’ transparency portal is already functional, the consumer should be able to track his/her subsidy status through it.


The major benefits

a)      No need to track if the delivery is made only to the consumer. Eg: the Gas Consumer is Prashant, but gas is delivered to Ram. Ram pays the full price to the gas dealer. But, the subsidy amount is transferred to Prashant’s Basic Bank Account. This means there is no loss to the Government, and Prashant also will not complain, as he has already got his subsidy amount.

b)      Even if dummy consumers are in the system, it will not make any difference to the Government, as it is receiving the full price of the gas cylinder.

c)      This will also eliminate the need to set up massive infrastructure to track the delivery of the Gas Cylinders to the correct consumer.




Re-disseminated by Prashant NBanker by daytime, blogger by night. I believe in the power of Safe ePayments.



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