Thiruvananthapuram, 19 September (H.S.):Kerala will be among seven states where the Centre is reportedly preparing to introduce a system enabling beneficiaries to purchase ration commodities using digital currency and e-wallets under the Smart Public Distribution System project.

The facility will initially be launched as a pilot project in selected districts. It will cover yellow Antyodaya Anna Yojana and pink Priority Household ration cardholders, who currently receive free foodgrains from the Union government.

Under the proposed arrangement, the monetary value of a beneficiary’s monthly ration entitlement will be credited as digital currency to an e-wallet linked to the cardholder’s mobile phone. Beneficiaries will receive advance messages detailing their monthly allocation. After collecting foodgrains from a fair-price shop, they can digitally transfer the amount from the wallet to the ration dealer.

The wallet balance can be used only to purchase ration commodities, a restriction intended to improve transparency and prevent diversion. As the Centre will directly monitor rice and wheat stocks, the system is also expected to prevent dealers from manipulating quantities.

The Smart PDS programme will introduce stricter electronic Know Your Customer requirements. Ration cards that remain unused for more than six consecutive months will be frozen, although beneficiaries will be given another 90 days to restore them.

During this period, any member listed on the card can visit a ration shop, authenticate a fingerprint through the electronic point-of-sale machine and complete e-KYC to reactivate the card. However, the full ration entitlement will be available only after every family member completes e-KYC.

If authentication is not completed within 90 days, the card will be cancelled. Those applying later will be eligible only for a non-priority white ration card. The Centre aims to remove ineligible beneficiaries and ensure free foodgrains reach deserving families. The new restrictions are expected to take effect next month.

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Hindusthan Samachar / Arun Lakshman