First State to establish Cashless System for distribution of food grains

First State to establish Cashless System for distribution of food grains

Question: Which is the first state of the country to establish Cashless System for distribution of food grains?
(a) Andhra Pradesh
(b) Telangana
(c) Rajasthan
(d) Gujarat
Ans: (d)

  • According to a release dated 8th February, 2017 by the Ministry of Consumer Affairs, Food & Public Distribution, Gujarat has become the first state in the country for establishing cashless system in its public distribution system (PDS) of food grains.
  • The beneficiaries who are eligible for subsidised food grains under the National Food Security Act will now need to carry only Aadhaar cards for getting their food grains in Gujarat.
  • The state government achieved the goal of installing Aadhaar enabled payment system in 17,250 fair price shops (FPS), much before the targeted date of March 31.
  • Background:
  • In January this year, Union Food Minister Ram Vilas Paswan had organized a meeting with state food ministers for establishing cashless system in the PDS across the country.
  • Majority of states agreed to provide cash less distribution system of food grains by March 31.
  • Benefits:
  • According to the Food ministry there are over 81 crore beneficiaries under National Food Security Act in the country.
  • This will help in establishing the identity of beneficiaries, help in stopping the leakages of grains at shop level and above all eradicate corruption in the PDS.
  • The Gujarat government has partnered with common service centres, a special purpose vehicle of ministry of Electronics and IT by offering 30 digital services through the FPSs like Rail Ticket reservation, mobile bill payment, payment of crop insurance and LIC premiums etc.
  • Further, a farmer can get the soil health card and registration for centrally sponsored schemes

Reference:
http://economictimes.indiatimes.com/news/economy/policy/gujarat-establishes-cashless-system-for-pds/articleshow/57041720.cms
http://pib.nic.in/newsite/PrintRelease.aspx?relid=158259