New Delhi: The Government of India has launched a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry. The initiative enables direct transfer of food subsidy into beneficiaries’ CBDC wallets instead of conventional bank accounts.

The pilot was inaugurated in Puducherry by Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi in the presence of Lieutenant Governor K. Kailashnathan and Chief Minister N. Rangasamy.

Under the initiative, digital coupons generated through the Reserve Bank of India will be credited to beneficiaries as programmable digital currency (e₹). These coupons can be redeemed at Fair Price Shops and authorised merchant outlets for purchasing entitled foodgrains.

Speaking at the event, Joshi said the integration of CBDC into the Public Distribution System will improve transparency, efficiency and beneficiary empowerment. Highlighting the vision of “Every grain, Every rupee, Every entitlements,” he said the system will help beneficiaries access their entitlements with greater clarity and accountability.

The government said the pilot will initially cover a limited number of beneficiaries and will be expanded after reviewing outcomes. The CBDC-based model is also expected to be rolled out in Chandigarh and Dadra and Nagar Haveli before being considered for wider implementation across the country.

BI Bureau