How to Link LPG to Bank Account
04 Aug 2021

How to Link LPG to Bank Account

Step-wise guide to help you link your LPG Connection to your Bank Account

Key Takeaways

  • Liquified Petroleum Gas (LPG) cylinders are widely used in India.
  • The government offers subsidies on LPG cylinders.
  • You can link your LPG connection to your bank account.
  • You can link your account with or without Aadhaar Card.
  • Bank accounts linked to LPG qualify for government subsidies.


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.

What is an LPG Subsidy, and Why Should I Link My Bank Account to LPG?

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.

How Do I Get the LPG Subsidy in My 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.

  1. Bank Account Linked to LPG via Aadhaar Card.

    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.

    • Download the Aadhaar LPG Linking Form and submit it online to your local distributor with proof of address.
    • Courier or post the Aadhaar LPG Linkage Form to your LPG Company with proof of address.
    • SMS or call the toll-free number of the LPG providers.

    Step 2: Link your Bank Account to your Aadhaar Card via one of the two methods mentioned below.

    • Visit your nearest bank and ask a representative to assist you.
    • Fill the 'Bank Account – Aadhaar Linkage Form' and drop it in the 'Bank Form Drop Box' at your local distributor, who will update your bank details.
  2. Bank Account Linked to LPG without Aadhaar Card

    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.

    • Submit your Bank Account Details to your local LPG Distributor by filling 'Form No. 4 - Mandate for Non-Aadhaar based LPG Subsidy Transfer'.
    • Submit your 17-Digit LGP ID to your bank by filling 'Form No. 3 - Mandate for Non-Aadhaar based LPG Subsidy Transfer Form'.


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.

With the digibank by DBS app, you can open a new saving account in a few minutes! Download the app to get started.

*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.