Section 6 in The Cash Transfer of Food Subsidy Rules, 2015
6. Modalities of cash transfer of food subsidy.
(1)The State Government shall prepare the digitised beneficiary database of the identified area, seeded with bank account details and Aadhaar number, if available, keeping in view the total coverage for the State or Union territory determined under the Act for receiving subsidised foodgrains.(2)The digitised beneficiary database for the identified area, seeded with bank account details and Aadhaar number, if available, shall be shared by the State Government on the portal of the Public Financial Management System for scrutiny, verification and validation of Aadhaar number and bank account details.(3)The findings of the scrutiny done by the Public Financial Management System shall be shared with the State Government.(4)The State Government shall address the issues raised in the findings of the Public Financial Management System and place the final digitised beneficiary database for the identified area, seeded with bank account details and Aadhaar number, if available, on the Public Financial Management System portal.(5)On the basis of final digitised beneficiary database, the entitled quantity of foodgrains and formula for computation of cash food subsidy under rule 5, the State Government shall also prepare and place a summary proposal, on the Public Financial Management System portal, as per the proforma annexed to these Rules, for transfer of due cash subsidy by the Central Government into the bank account of the State Agency.(6)The Central Government shall transfer, on monthly basis, the total cash subsidy for the final digitised beneficiary database of the State or Union territory, computed in accordance with the provisions of Rule 5, into the bank account of the State agency.(7)In case, the State Government is further subsidising the foodgrains beyond the Central Issue Prices under the Act, for all the entitled households or a part thereof, the State Government shall clearly earmark in the digitised beneficiary database such of the entitled households which are eligible to receive additional subsidy from the State Government and amount of State subsidy in cash for each of such entitled households and credit the total amount of State subsidy into the bank account of State Agency.(8)The State agency shall credit the consolidated amount of entitled cash subsidy comprising of Central subsidy in accordance with the provisions of rule 5 and State subsidy as per the provisions of sub-rule (7), if applicable, into the individual bank accounts of entitled households in the digitised beneficiary database, on monthly basis, through the Public Financial Management System by following procedure specified by Controller General of Accounts, Ministry of Finance, Government of India, from time to time.(9)All the activities specified in sub-rules (1) to (8) shall be made online.(10)The digitised beneficiary database for monthly transfer of cash subsidy from the Central Government to the State agency and from the State agency to the entitled households shall be deemed to be frozen for that particular month.(11)The State Government shall undertake regular online updation of digitised beneficiary database, to ensure that cash transfer is being made only in the bank accounts of entitled households.(12)The State Government shall take into account deletions or cancellation of ration cards, before sending summary proposal under sub-rule (5) for subsequent months.(13)The State Government shall endeavour to ensure foodgrains entitlement of targeted beneficiaries specified in the Act, through cash transfer under the Scheme.
