Step-wise guide to help you link your LPG Connection to your Bank Account
Liquified Petroleum Gas (LPG) is extensively used in Indian households in LPG Cylinders for cooking purposes. Bharat Gas, Hindustan Petroleum and Indane are the widely known companies that provide LPG cylinders in India. The Indian government offers several subsidies to consumers on bank account linked to LPG. Read on to understand what an LPG subsidy is how to connect your bank account to avail it.
The Ministry of Petroleum and Natural Gas, Government of India, launched the Direct Benefits Transfer for LPG (DBTL)1 scheme across the country. Due to the substantially high rates of LPG cylinders, the government rolled out this scheme under which you, as the customer, would not have to pay the total price of the LPG cylinder delivered at your doorstep by your respective LPG Distributor. The subsidy is essentially a discount on the LPG. When the LPG representative delivers the cylinder, you have to pay the total price. After 2-3 days, the discount amount is directly transferred to your bank account.
You should link LPG to your bank account if you wish to receive the LPG Subsidy directly in your bank account.
To avail of an LPG subsidy, you must become Cash Transfer Compliant (CTC). There are two ways on how you can be CTC.
The DBTL scheme, when initially launched, made it mandatory to hold an Aadhaar Card. After acquiring your Aadhaar Card, you need to follow the below steps to link LPG to your bank account.
Step 1: Link Aadhaar to your LPG Connection. There are numerous ways of doing so.
Step 2: Link your Bank Account to your Aadhaar Card via one of the two methods mentioned below.
In 2015, the government revised the DBTL scheme and lifted your bank account and Aadhaar Card mandate link. You can follow either of the below methods to link your LPG Connection to your Bank Account without Aadhaar Card.
Since LPG Cylinder prices are high, a subsidy proves to be beneficial. Linking your LPG connection to your bank account has become easier than ever, with the government and the respective companies offering various options.
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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.