Delhi Lakshmi Yojana: ₹2,500 aid cannot be spent on tobacco, gambling and...; here's what’s banned?

The Delhi Lakshmi Yojana, which offers ₹2,500 monthly assistance to eligible women from low-income families, came into effect on August 1. However, beneficiaries must meet the scheme’s eligibility rules throughout the period they receive the benefit. From recovery of funds in case of ineligibility to restrictions on spending, here are the key rules beneficiaries should know.

What happens if the beneficiary is found ineligible?

According to the notification, if a beneficiary is found ineligible at any point, the government will stop the financial assistance immediately and initiate recovery of the amount already released. Legal or administrative action for fraud will be undertaken where applicable.

What happens in the case of the beneficiary's death?

In the event of the beneficiary's death, disbursements to the beneficiary's Central Bank Digital Currency (CBDC) wallet will be stopped immediately. The money accrued in her Recurring Deposit (RD) account, including interest, will be transferred to her legal heir.

If the amount remains unclaimed for two years from the date of death, it will revert to the government account, guidelines state.

What are the spending restrictions?

The CBDC wallet will have spending restrictions on items and services on the government's negative list, including alcoholic beverages, tobacco products, narcotic drugs and psychotropic substances, lottery tickets, gambling and betting.

How does the scheme work?

Under the scheme, by default, ₹1,500 of the scheme money will be credited into an RD or Fixed Deposit account, with a lock-in period till July 31, 2029, and the remaining sum will go the beneficiary's bank account linked with a a CBDC wallet.

Alternatively, the entire ₹2,500 monthly assistance can be credited to an RD or FD account, also with a lock-in period till July 31, 2029, if the woman chooses so.

Who is eligible?

To be eligible, a woman must be the eldest eligible woman in her family and be a registered voter of Delhi. The annual family income must not exceed ₹2.5 lakh.

The applicant, her husband or either of her parents must have been a resident of Delhi for at least 10 years as on the date of application.

Women receiving government pensions or certain other government financial assistance, income-tax payees, GST filers, government servants and public office holders are excluded from the scheme.

Women from families with more than three living children, annual electricity consumption exceeding 2,400 units, or ownership of a four-wheeler are also ineligible.

Applications for the scheme will remain open throughout the year through the Delhi Lakshmi Yojana portal.

The last day of every month will be treated as the cut-off date for applications received during that month, with eligible applications considered for benefits from the subsequent month, subject to approval, it added.