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As a Safe eTransactions Motivator, on implementation of this scheme will lead to a massive boost in eBanking transactions. Yes, we Indians are tech-savvy, and can adapt to new technologies very fast.
Mobile phones are important tool in the Aadhaar set-up too.
Let us wait and see what the future holds for Mobile Banking in India.
The first set of subsidy disbursements are getting routed through the NPCI ACH-APB mode. The LPG Subsidy disbursements are routed through the beneficiaries’ ‘Aadhaar Number’. The ‘Aadhaar Number’, is the common link between the LPG companies and the Banks.
Over the last few months, there has been a steady increase of LPG subsidy transactions.
The Banks have to seed the Aadhaar numbers in the customer’s banks accounts, and share such Aadhaar numbers with NPCI.
Based on the mapping done in the NPCI Aadhaar Mapper, the transactions are routed to the destination bank. Destination banks based on the Account Number-Aadhaar number mapping, route the funds to the respective destination account.
The return file sent to NPCI should invariably contain the Beneficiaries’ Account Holder Name and Beneficiaries’ Account Number. This is a vital requirement for Subsidy disbursement departments to answer any queries. The information is important from a risk-angle too.
At the launch of ACH-APBS, the guidelines clearly mentioned that the return file should contain the Beneficiaries’ Account Holder Name and Beneficiaries’ Account Number. However, still 30% of the transactions do not contain the requisite data.
NPCI has made it mandatory that the two fields are included in the APB Return file w.e.f November 11, 2013.
The ball has been set rolling. The stage has been set, and the first shot will be fired by the month end. In the Conference of District Collectors on Direct Benefit Transfer (DBT) held by Planning Commission, Government of India on 29th April, 2013, it has been announced as under : –
The Cabinet Committee on Political Affairs on 09/05/2013 gave its nod for direct benefit transfer (DBT) for subsiding LPG cylinders directly to the consumer.
The process will start from June 1 in 20 districts and if it is successful then by October it will be implemented across the country for all LPG consumers.
The Finance Ministry has been asked to start a separate account to ensure funds for the direct subsidy.
After due deliberations on the periodicity of the subsidy transfer, it has been decided that only a month’s advance subsidy will be credited to the consumers accounts. As of date, only LPG subscribers who have seeded their bank account with LPG companies and banks would receive the subsidy. Once the first cycle is completed, the participating institutions would meet and analyze the pros and cons of the present disbursement mode. Based on the learning’s, future plans would be finalized. As this is the first major rollout, glitches if any, will be fixed into.
The 20 districts involved in the first phase covered Andhra Pradesh, Daman and Diu, Goa, Himachal Pradesh,Karnataka,Kerala,Maharashtra,Pondicherry,Sikkim and Tripura
The future is exciting, will you be part of it?
Multiple agencies in Andhra Pradesh are working to meet the deadline of May 15, for smooth rollout of LPG subsidy via the DBT (Direct Benefit Transfer) route.
The minute details will be made public in the coming weeks. As this is the first major collaboration between companies, banks, integrators, government departments, bank consumers, UIDAI, and NPCI, minor glitches are expected.
As of now the broad viewpoints which are emerging are as under
The INR 4000 magic figure
Cost of 1 LPG cylinder = Rs901.50
Subsidy amount of 1 LPG cylinder = Rs434/-
Subsidy amount for 9 LPG cylinders = 434*9 = Rs3,906/-
Option 1:
Consumers pay the full amount of the LPG cylinder, and later on, Government credits the subsidy to the Aadhaar linked bank account.
Option 2:
Government credits the full subsidy at the beginning of the year, and consumers chip in their share to buy the LPG cylinder at the actual rate.
Option 3:
Subsidy is credited when the LPG cylinder is booked, by the LPG consumer.
Option 3 seems to be the most balanced option. Each of the above options has its own plus and minus points. Let us wait and see, what will be the decided option.
All the benefits which were transferred via the DBT scheme were simple as compared to the LPG subsidy project.
It is to be noted, that the LPG consumers must utilize their full quota of 9 subsidy cylinders in the financial year. There is no carry-over to the next financial year.
Simple Financial Mantras 