The Ministry of Consumer Affairs, Food and Public Distribution (MoCAFPD) on February 25, 2026, issued the notification regarding the CBDC-Based Digital Food Subsidy Pilot Launched Under PMGKAY in Puducherry
The following has been stated namely: -
• The Government of India will launch a CBDC-based Food Subsidy Distribution Pilot under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) to strengthen digital public infrastructure and improve transparency in subsidy delivery.
• The Digital Rupee (e-rupee), issued by the Reserve Bank of India as a Central Bank Digital Currency (CBDC), will be used to enhance the Direct Benefit Transfer (DBT) ecosystem through secure, instant, traceable, and programmable digital cash.
• Under the pilot, food subsidy will be credited as programmable CBDC tokens into beneficiaries’ digital wallets, redeemable only for entitled foodgrains at authorized merchants and Fair Price Shops (FPS), ensuring purpose-bound usage and greater transparency in the Public Distribution System (PDS).
• The project is being implemented in coordination with the Government of Puducherry, RBI, Public Financial Management System (PFMS), and designated banking partner Canara Bank, marking a significant step in digital transformation of India’s food security system.
[Press Release: 2232780]
