Delhi government’s flagship welfare scheme for women, the Delhi Lakshmi Yojana, which promises a monthly payout of ₹2,500 to eligible beneficiaries, may exclude approximately 15 per cent of women from the lowest income strata due to a restrictive eligibility criterion. The scheme, approved by the Cabinet led by Chief Minister Rekha Gupta on Tuesday, July 28, bars women with more than three living children from receiving the benefit, a condition that could significantly impact poorer households in the capital.
According to an analysis of the latest available data, this restriction could probably exclude about 15 per cent of women in the lowest income strata of Delhi’s households. The restriction was revealed after guidelines for the Delhi Lakshmi Yojana scheme were approved by the Cabinet. The scheme will also exclude women who use more than 2,400 units of electricity a year, which is essentially monthly usage above the 200-unit threshold for free power.
Applications for the scheme will open through an online portal from August 1, with the government targeting to release the first instalment by Raksha Bandhan after verification of applications. The scheme was one of the key election promises made by the BJP during the Delhi Assembly elections.
Under the approved guidelines, women aged between 21 and 60 years will be eligible for the payment if their family’s annual income does not exceed ₹2.5 lakh. Officials said the scheme has been approved for an initial period of three years from the start date, after which it can be continued with necessary modifications.
The Cabinet note approved on Tuesday also states that women who are already receiving financial assistance or pension under any other government scheme, those who pay income tax, file GST returns, are government employees, or belong to families with members employed by the Centre, state governments, public sector undertakings or other government organisations will be ineligible.
Additionally, families owning a four-wheeler, annual household electricity consumption exceeding 2,400 units and women with a criminal record will also be excluded from the scheme’s benefits.
Chief Minister Rekha Gupta, while announcing the decision after the Cabinet meeting, said the government has fulfilled an important promise made to women during the Assembly elections. She said that under the Delhi Lakshmi Yojana, every eligible woman will receive financial assistance of ₹2,500 every month, adding that this scheme will start a new chapter of economic security and self-reliance for lakhs of women.
The government has also finalised the method for disbursing the monthly assistance. Beneficiaries will have two options. Under the first option, ₹1,500 every month will be deposited in a recurring deposit or fixed deposit account, while the remaining ₹1,000 will be transferred to a Central Bank Digital Currency (CBDC) wallet. The digital wallet can only be used to spend on goods and services approved by the government, which come under a fixed ‘negative list’. The negative list of the wallet typically includes numbers that are associated with fraud or scam.
Under the second option, beneficiaries can receive the entire ₹2,500 through RD or FD. The government says this is a way to encourage long-term savings. In both options, beneficiaries will not be able to withdraw cash.
The three-children cap is perhaps one of its kind among the various cash transfer schemes for women, including those in other BJP-ruled states. The condition has raised questions about its impact on the most vulnerable sections of society, particularly in households where larger family sizes are common due to socio-economic factors.
The Delhi Lakshmi Yojana represents a significant welfare initiative aimed at providing economic support to women from economically weaker sections. However, the exclusion criteria, particularly the three-children limit, may prevent a substantial portion of the target demographic from accessing the benefit, raising concerns about the scheme’s reach and effectiveness in addressing women’s financial empowerment in the capital.
With applications set to open from August 1, the government will now focus on creating awareness about the scheme and ensuring smooth implementation of the online application process. The success of the initiative will largely depend on how effectively the government can balance its fiscal constraints with the need to support the maximum number of eligible women.
