However, implementing such a scheme would require the government to dig into funds which were meant for a host of subsidies such as food, health and fuel.
The unemployment benefit is planned as a substitute for the universal basic income, which reports suggested had been considered by the government.
As of now, it is not clear how the funds required for the scheme would be generated. Further, the Niti Aayog is working on a monthly social security scheme meant for the unemployed from poor families, especially those below the poverty line. Under that scheme, the stipend works out to a little above Rs 416 a month.
While states such as Kerala, Madhya Pradesh, Haryana, Punjab and Chhattisgarh have similar schemes, this will be a first by the Centre, reported the Hindustan Times.