Ration Card, Gas Subsidy & Bank Rules Get a Digital Makeover: What You Must Know

New Delhi: The Government of India has announced a sweeping digital transformation of the Public Distribution System (PDS), LPG subsidy framework, and banking regulations. These reforms, effective from May 15, 2025, aim to enhance transparency, reduce fraud, and improve delivery of government services across sectors.

Ration Card Rules Undergo Major Overhaul

To modernize the ration distribution system, the following mandatory requirements have been introduced:

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Requirement	Deadline	Non-Compliance Effect
Aadhaar Linking	May 15, 2025	Suspension of benefits
Biometric Authentication	Immediate	Inability to collect rations
Annual Verification	Yearly	Card may be marked inactive
e-KYC Completion	May 15, 2025	Deletion from database

Revised Income Eligibility for Ration Cards

Area	Annual Income Limit	Special Provisions
Rural Areas	₹1.20 lakh	Exemptions for widows, senior citizens
Urban Areas	₹1.50 lakh	Exemptions for persons with disabilities
Metro Cities	₹1.80 lakh	Case-by-case evaluation

All new ration card applications must now be submitted online only, with physical forms no longer accepted at most locations.

One Nation One Ration Card (ONORC) Is Now Mandatory

The ONORC scheme is now fully implemented across India, allowing beneficiaries to collect food grains from any Fair Price Shop (FPS) in the country.

ONORC Key Features:

• Nationwide portability
• Real-time transaction tracking
• Biometric verification
• Standardized entitlements across states

Major Changes to Gas Cylinder Subsidy and Booking

The LPG subsidy framework has been overhauled to improve targeting and transparency:

Category	Subsidy	Eligibility
BPL Families	₹300/cylinder	Aadhaar linked & valid BPL card
Middle Income	₹200/cylinder	Annual income below ₹8 lakh
Higher Income	No subsidy	Income above ₹10 lakh

Booking & Delivery Updates:

• Max 2 cylinders/month; 15/year per household
• KYC and OTP verification required for delivery
• Subsidies via Direct Benefit Transfer (DBT)

Smart LPG Cylinders to Roll Out in Phases

Smart cylinders equipped with:

• Digital chips for tracking
• Leak detection systems
• Tamper-proof features
  will first be introduced in urban areas and expand nationwide by December 2025.

New Bank Account Regulations Announced

The Reserve Bank of India (RBI) has also issued new guidelines for account holders:

Mandatory Updates by May 15, 2025:

• Aadhaar Linking
• Mobile Number Updation
• Nominee Registration

By June 30, 2025:

• Address verification for accounts older than 3 years

New Minimum Balance Requirements:

Account Type	Urban	Semi-Urban	Rural
Savings Regular	₹2,000	₹1,000	₹500
Current Account	₹10,000	₹5,000	₹3,000
Basic/Salaried	No minimum balance required across regions

Digital Push Incentives:

• NEFT/RTGS charges reduced
• UPI limit raised to ₹5 lakh
• Mobile banking registration now mandatory
• Annual digital activity now required to retain certain benefits

Who Will Be Affected and How to Prepare

Group	Impact	Action Needed
BPL Families	Ration/e-KYC updates	Complete Aadhaar linking and KYC
Middle Income Homes	Reduced LPG subsidy, bank charges	Check eligibility and maintain minimum balances
Rural Citizens	Digital compliance	Visit CSCs for help with updates
Migrant Workers	ONORC portability	Link Aadhaar to ration card & bank account
Senior Citizens	Documentation barriers	Utilize govt-organized camps for help

Rollout Timeline: Key Dates to Remember

• May 15, 2025: Core digital rules go live
• June 30, 2025: Verification deadline for old accounts
• Sept 30, 2025: Smart LPG cylinders phase 1 ends
• Dec 31, 2025: Final deadline for compliance and assistance

Benefits and Challenges of the New System

Benefits:

• Less leakage and corruption
• Faster, digital-first service delivery
• Real-time monitoring and better data
• Increased financial inclusion