Village loan sharks love to take this card as security for their cut-throat loans to the poor, because they know that its owner will try their level best to not jeopardize their access to this card: no card means the kids starve. Since the ration card is issued by the government, it is (well neigh) impossible for their clients to get a duplicate issued, as well.
This new thing will probably end up as one more piece of paper/plastic for the poor to spend their life redeeming from the shylocks.