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  • Big move on rations! PM Modi govt to give cash instead of grains, who's eligible?

Big move on rations! PM Modi govt to give cash instead of grains, who's eligible?

The new Indian ration distribution law allows clients to get money in their bank accounts instead of rice and wheat. Some states are piloting the SBI-created e-RUPI digital voucher to complete this process.

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Author : Richa Barua
Published : Feb 05 2026, 10:00 AM IST
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A big change is coming to India's ration system. Instead of getting grains from ration shops, the government will now offer direct cash transfers to banks.

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Once the new rule is implemented, ration cardholders will decide whether they want food grains or cash. This new system will be based on modern technology. The government, with SBI's help, has created a special digital voucher called e-RUPI.

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The entire ration distribution process will be done through this special digital voucher. However, it's not yet launched nationwide. It's a pilot project in places like Chandigarh, Puducherry, Dadra and Nagar Haveli, and parts of Maharashtra.

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This change is being made for several reasons, including canceling fake ration cards. Since this pilot system started, 76,363 duplicate cards have been found. It's also expected to stop ration theft, black marketing, and middlemen.

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Monthly e-vouchers will be sent to cardholders' registered mobile numbers. The amount (e.g., ₹500 or ₹1000) depends on family size. Use it for grains or redeem it for cash to your bank.

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About the Author

RB
Richa Barua
With over two decades of experience in top media outlets like Times of India, International Business Times, and India Today, Richa currently leads Newsable and MyNation (Entertainment and Lifestyle) non-news team at Asianet News Network. Her expertise includes celebrity interviews, audience growth, and content strategy, backed by an Executive Program in Digital Marketing from IIM Calcutta, along with a journalism degree from Delhi University, a master's in media studies and corporate communications.
India

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