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Aadhaar-enabled beneficiary[edit]
The bank account and ration card of eligible beneficiary is linked to Aadhaar number. A pre-existing or new bank account can be enabled as AeBA by seeding (linking) it with Aadhaar number. Seeding makes mapping information stored onto NPCI payment-gateway, that facilitates the subsidy payment. The seeding helps identify the genuine and eligible beneficiary, and prevents duplicate and nonexistent (fake, dead) persons.[18] One can link bank account as self-service option thru ATM kiosk, Internet, bank website, telephone or by providing a copy of the Aadhaar letter to bank. Bank links the account with Aadhaar number after online verification thru RASF (Remote Aadhaar Sharing Framework link).

Through e-Ration service people can apply and obtain ration cards and also check the availability of food grains and their cost online. This will help in ending the corrupt practice of holding back rations and ensuring that the cards reach the needy. Anyone who has an Aadhaar card can apply for e-ration card. The website of Department of Food Supplies and Consumer Affairs will provide the details of people coming under food security scheme. This service is introduced in Delhi for the first time.

PDS ration in some districts of Andhra Pradesh can be an illustrative example of using modern technology to prevent retail corruption. Here ration card and corresponding bank account of the head of the family (HoF) have been seeded (linked) with Aadhaar Numbers of family members.[17][35][36]

When a person goes to PDS shop to buy ration, the person is authenticated instantly thru Aadhaar KYC handheld device. The PDS computer system reads out the quantity eligibility and balance of each item in local language. After purchase, the balance quantities for that month are read out. The buyer pays the open market rate to the PDS shop. Computer printed receipt is generated with all purchased item, balance items, money paid and subsidy amount. The subsidy amount is credited to the bank account of the beneficiary under DBT program.[37][38]

Since the PDS computer system is connected to the central server, therefore people can buy ration items from any PDS shop. If some item is not available at one shop, then people can buy from another shop. It is like anytime anywhere bank ATM. Thus it provides tremendous flexibility, access and options to the general public that was never see before in PDS.[39]

Once all PDS shop of the state are linked to Aadhaar-enabled central server then people can buy their ration anywhere in the state without changing ration card (like bank ATM card). It will prove to be a boon for the migrant workers in the state.

In the similar way, subsidized LPG is linked with Aadhaar Number and delivery is made at market rate. The subsidy amount is credited as DBT to the eligible beneficiary. Thus leakage and diversions of subsidized commodity do not give any benefit to the middlemen, hence this retail corruption comes to halt.