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Digital verification: Ration dealers question advance payment demand

Raise concerns over Rs 1 lakh security deposit, e-KYC machines

LCT Desk by LCT Desk
November 8, 2026
in News
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Javid Dar calls for sustainable transformation of agriculture sector

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Srinagar, Nov 7: Fair Price Shop dealers in Kashmir have raised concerns over additional financial requirements, including a Rs 1 lakh security deposit, licence fee and advanced demand of cash before taking a ration digital verification.
A ration dealer said the new face authentication system could create difficulties for beneficiaries, particularly elderly and ailing people.
“If this system is implemented, it will create many problems,” he said.
Another dealer said arranging the required equipment and meeting additional financial requirements was becoming difficult with their existing earnings.
“We are being asked to arrange mobile phones for the new system. These things involve considerable expenses. How are small dealers supposed to manage all this with their existing income?” he said.
The dealers also expressed concern over the requirement of a Rs 1 lakh security deposit, saying such a financial burden would be difficult to manage.
They also flagged the proposed licence fee of Rs 2,000 and the demand for advance payments, questioning why dealers were being asked to pay before procuring the required machines and other equipment.
On face authentication, they sought continuation of fingerprint and OTP-based verification options alongside face recognition to ensure elderly and ailing beneficiaries do not face difficulties in collecting ration.
The concerns come amid the Food, Civil Supplies and Consumer Affairs Department’s push for Aadhaar-based e-KYC and face authentication in ration distribution. During a review meeting on November 5, Commissioner Secretary FCS&CA Sourabh Bhagat directed officials to intensify efforts to complete the e-KYC of pending beneficiaries and introduce the Face Authentication Application from the current month’s ration distribution cycle.
A top official of the department told KNO that the upgradation of machinery was part of a routine process and there was no need for worry.
He said the new e-KYC machines would have all verification options, including OTP and face recognition, adding that the move was part of efforts to ensure transparency. “Everything is transparent these days and there is no need for any sort of panic,” he said. (KNO)

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