Gujarat: Poor Aadhaar seeding, transaction failures hold back digitisation of PDS

According to the SLBC report, there were over 1.03 crore bank accounts under PMJDY in Gujarat, out of which only 60 per cent have been seeded by Aadhaar Card.


Last month, Gujarat became the first state to roll out a cashless system for all 17,250-odd fair price shops (FPS), also known as ration shops, but “poor Aadhaar seeding” and “transaction failures” have put a spoke in wheel, according to a State Level Bankers’ Committee (SLBC) report released on Tuesday.

“The state of Gujarat has already implemented AePS (Aadhaar Enabled Payment System)-based digital payment in all fair price shops. However, the Food and Civil Supplies Department has intimated that they are experiencing difficulties in effective implementation of AePS payment at FPSs,” stated the report that was released after all bankers from the state held a meeting. “Poor Aadhaar seeding in Pradhan Mantri Jan Dhan Yojana (PMJDY)/ savings accounts of PDS (public distribution system) beneficiaries,” was cited as one of the reasons for the slack implementation of the digitisation process in fair price shops. According to the SLBC report, there were over 1.03 crore bank accounts under PMJDY in Gujarat, out of which only 60 per cent have been seeded by Aadhaar Card.

The SLBC report also cited “transaction failures due to non-functioning of banking system on Sunday (may be due to maintenance),” as another reason for holding back the implementation of cashless system.

In order to overcome these shortcomings, banks in Gujarat have been asked to take “necessary action to expedite the Aadhaar seeding in PDS beneficiaries’ account”. They have also been told to “explore the possibility of opening special counter to facilitate the customers for Aadhaar and mobile number seeding in accounts”.

The banks have also been asked to ensure “availability of banking system on Sunday/holidays for AePS-based transactions”. Moreover, the finance department in a letter issued March 1, 2017, have asked all banks to seed Aadhaar in “all dormant/non-active PMJDY accounts” and to ensure that all PMJDY RuPay cardholders initiate card usage by swiping their card at least once.


[Copyright By Avinash Nair]