The government on Friday launched a Central Bank Digital Currency-based Digital Food Currency pilot in Puducherry, marking the first use of the digital rupee for food subsidy transfers under the Pradhan Mantri Garib Kalyan Anna Yojana.
Under the pilot, food subsidies will be credited directly into beneficiaries’ CBDC wallets as programmable e₹ tokens instead of conventional bank accounts. The initiative integrates the digital rupee issued by the Reserve Bank of India into the Direct Benefit Transfer framework of the Public Distribution System.
Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi inaugurated the pilot in Puducherry. He said the move as a “transformative milestone” in India’s food security architecture, saying CBDC integration would enhance transparency, efficiency and beneficiary empowerment.
