In Himachal Pradesh, the government is planning to provide electricity subsidies directly into consumers’ bank accounts, similar to the gas subsidy system. This new process will begin after linking consumers’ electricity meters with their Aadhaar numbers and ration cards. Consumers will need to pay their full electricity bill first, and then the subsidy will be credited to their bank accounts.
To make this possible, the Electricity Board aims to complete the e-KYC process for all consumers by the end of this month. Employees are visiting homes to collect Aadhaar and ration card details. During the process, an OTP (one-time password) is sent to the Aadhaar-linked mobile number, which helps complete the e-KYC. Once completed, the subsidy for domestic consumers will be transferred directly to their bank accounts through Direct Benefit Transfer (DBT).
The state government currently provides a subsidy for electricity consumption up to 300 units per month. Each year, the government grants ₹800 to ₹1,000 crore to the Electricity Board for this purpose. After the e-KYC is done, only one electricity meter per family will receive the subsidy. If a consumer has more than one connection, the additional connections will be charged at non-subsidized rates.
In addition, consumers will be required to update the correct electricity load on their meters. The Electricity Board has received complaints that some consumers are using more electricity than the approved load on their meters. Consumers will have up to three months to make this correction, and they will only need to pay a revised security deposit, without having to submit a test report. This new system is expected to make the subsidy process smoother and ensure that only eligible consumers receive the benefits.
The new system of providing electricity subsidies directly into consumers’ bank accounts in Himachal Pradesh could lead to a significant increase in foot traffic at local bank branches. Many consumers, especially those unfamiliar with digital platforms, might visit banks for help with e-KYC processes or to withdraw the subsidy amount once credited. This could result in long queues and delays at already busy branches.
To avoid overcrowding and ensure smooth operations, banks should consider increasing staff at branches, especially in rural areas. Additional staff would help handle the extra workload, assist customers with e-KYC procedures, and expedite cash withdrawals, minimizing inconvenience for the public. Planning ahead by increasing resources could ensure a seamless transition to this new system without overwhelming the banking infrastructure.
