All banks have been instructed to gear up for the rollout of LPG subsidy through the government's ambitious Direct Benefit Transfer (DBT) scheme.

The instruction was given by Union Finance Minister P Chidambaram on Friday, during a meeting with senior PSU bankers.

After the meeting, Mr. Chidambaram told reporters, "I have asked them (bankers) to get ready for the rollout of LPG for the whole country."

By 15th of May, the government aims to cover a total of 20 districts under the LPG cash subsidy through DBT scheme. In the second phase, which will commence in July, the scheme will be rolled out in additional 78 districts of the country.

Under the ambitious DBT scheme, the government transfers subsidies and other benefits directly into the beneficiaries' Aadhaar-linked bank accounts.

Each household, currently, is entitled to 9 14.2-kg LPG cylinders at subsidised price of Rs 410.50, while the cylinder costs 901.50 at the market price. In other words, the government pays a subsidy Rs 435 on each of the subsidised cylinders.

Those who will get cash subsidy on LPG cylinders from the government will have to purchase LPG cylinders at market price.