Gas KYC and LPG Subsidy Income Requirements
India probably has the most number of LPG cylinder users in the world, with hundreds of agencies vying to ensure that we always have a cylinder in our homes. Given this magnitude of numbers, it is imperative that a standard procedure be followed, ensuring that customers get what they require at the right time. KYCs are something which we typically associate with banks, but gas agencies serve an almost equal amount of people and depend heavily on these KYC norms.
Need for KYC for Gas Connections
One might think that filling a KYC form at a gas agency is unnecessary, but it is imperative to ensure that an agency is able to provide smooth service. With thousands of customers catered to on any given day, a KYC can be the difference between getting the cylinder delivered to your home or to a wrong address. Listed below are the major reasons when customers need to submit KYC documents.
- Individuals who are looking for a new gas connection. Anyone looking to get a new gas connection needs to fill and submit a KYC form. The information submitted is used to determine whether an applicant is genuine and whether the connection can be provided by a particular agency.
- Existing customers who wish to regularize their connections will also have to submit KYC forms. This is targeted to those people who are using a gas connection in the name of someone else. Given the fact that a number of people move around town, an owner could provide gas connection in his/her name to tenants, or there could be cases where individuals are using false identities to avail gas connections. Regularization is intended for such individuals.
- There are cases where a particular customer had registered for a gas connection but hasn't used it. This could lead to the connection getting dormant. Individuals who wish to revive their dormant connections will have to submit KYC forms with updated information. It is imperative that one realise if their gas connection is dormant or no, for failing to reactivate it could lead to delays in case of emergencies.
- Given the fact that a number of us move from one city to another in the pursuit of our career, there are provisions to transfer the gas connection too. Individuals who wish to transfer their gas connection can do so by filling the KYC form and submitting it to the new agency/distributor. This saves them the time and hassle of re-registering for a new gas connection.
- Individuals who wish to change the name in which an existing gas connection exists can do so by submitting a KYC form. This could be in the case of death of an original connection holder or in the case of his/her decision to leave the country.
- There could be instances where your information is wrongly registered/used. In such cases, you will have to submit KYC forms along with supporting documents to correct such mistakes. Also, in the event of someone misusing your name to get a gas connection, you will have to submit the KYC form along with relevant documents to rectify it.
In addition to the aforementioned reasons, an agency could ask for KYC details in other cases as well, depending on certain requirements.
Importance of KYC Forms
KYC forms serve a number of functions, some of which are highlighted below:
- Customer Service - They help gas agencies and companies provide quality service to customers. Given the fact that there are a number of players in the market, companies strive to provide better services each time. KYC forms help them know facts about the customer and provide service which is appreciated.
- Keep a Track - It is important to keep a track of customers. KYC policies help everyone involved keep a track of their customers. Knowing who their customers are is as important as the service they provide.
- Prevent Misuse - There can be instances where individuals use illegal gas connections. Given the fact that LPG is subsidized, only 1 connection is permitted per family. KYC forms help weed out any discrepancies which might pop up in such cases. They also ensure that there is no unauthorized use of LPG cylinders which are heavily subsidized.
What Does a KYC Form Consist?
A KYC form typically consists of the following elements:
- Personal Information - This includes your name, date of birth, your gas connection number, and the name of your spouse/parent.
- Contact Details - This section contains your address and place where you wish to get the cylinder delivered. It also includes the contact number and email id.
- ID Proofs - A valid identity proof should be submitted along with the form. This could be either a driving license, Aadhar, voter id, rent agreement, etc.
Most gas companies provide KYC forms on their websites. Additionally, one can also visit an agency/dealer to get the form.
Income Requirements for LPG Subsidy
LPG in India is heavily subsidized, ensuring that the common man doesn't have an additional burden on his head. The cost of subsidized cylinders depends on the city they are used in, ranging between Rs.420 and Rs.465 for a 14.2kg cylinder. In comparison, a non-subsidized cylinder costs anywhere between Rs.593 and Rs.605, a difference of Rs.170. For a normal family, this translates into a huge portion every year, which is why the subsidy amount is critical to them.
The government has provided certain measures to ensure that the poor get subsidized LPG. In this manner, it had issued a directive which talks about the income requirements in order to get LPG at subsidized rates.
As per this directive, individuals who have an annual income of Rs.10 lakh or more cannot avail LPG subsidy. This income could either be the income of a particular individual or the income of his/her spouse. For example, Mr. James has an income of Rs.8 lakh per annum. As per the directive he is entitled to get LPG cylinders at subsidized rates. Now, James get married to Rita, who has an annual income of Rs.12 lakhs. Now, since her income exceeds Rs.10 lakh, the couple will not be eligible to get subsidized LPG cylinders.
Customers are expected to submit this declaration in order to check if they are eligible for the subsidy or not.
FAQs on Gas KYC and LPG Subsidy Income Requirements
- Who is not eligible for an LPG subsidy?
People with a yearly income of Rs.10 lakh or more are not eligible for LPG subsidies, according to a directive that the government of India has issued.
- Do you need to submit a KYC form if you moved from one state to another in the country?
Yes, you need to submit the KYC form if you moved to a different state in the country.
- Do I need to submit a KYC form to reactivate dormant connections?
Yes, Individuals who want to restart dormant connections must submit the KYC form with their updated information.
- What is the full form of KYC?
KYC stands for Know Your Customer.
- Who issued the directives for KYC?
The Reserve Bank of India (RBI) issues the directives for KYC.
- Is KYC mandatory for an LPG subsidy?
Yes, KYC is mandatory for you to get a subsidy on LPG.
- What are the details you need to fill in the KYC form?
You need to fill in personal information such as your name, name (spouse or parent), date of birth, residential address, contact information (phone and email address), gas connection number, documents supporting proof of address and identity proof.
- Where can I get a KYC form for an LPG subsidy?
The majority of gas companies have KYC forms that can be downloaded from their websites. The form can also be obtained by visiting an agency/dealer.
- Do I need to submit my income certificate to check if I am eligible for an LPG subsidy?
Yes, you need to submit your income certificate or proof of income to check if you are eligible for an LPG subsidy.
- Do I need to submit KYC In the event of the death of the connection holder?
Yes, you must submit KYC in case of the death of the connection holder.
- Are multiple LPG connections allowed in the same household?
No, multiple LPG connections (subsidy) are not allowed in a single household. In such a case, it is recommended to surrender the extra LPC connections.
- Why are multiple subsidised LPC connections in the same household not allowed?
Yes, multiple subsidised LPG connections in the same household are not allowed to prevent misuse of the Government subsidy schemes.
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