The Government of India launched a Central Bank Digital Currency (CBDC)‑based Digital Food Currency pilot for Direct Benefit Transfer (DBT) under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry on February 26, 2026.
Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi, inaugurated the initiative in the presence of Puducherry’s Lieutenant Governor K. Kailashnathan and Chief Minister N. Rangasamy.
Joshi described the pilot as a transformative milestone in India’s food security architecture. He emphasised that integrating CBDC into the Public Distribution System (PDS) will enhance transparency, efficiency, and accountability, ensuring over 80 crore beneficiaries receive entitlements securely and in real time. He highlighted the vision of “Every grain, Every rupee, Every entitlement,” noting that programmable digital currency will empower citizens and deepen the Digital India initiative.
Under the pilot, digital coupons generated by the Reserve Bank of India will be credited directly to beneficiaries’ CBDC wallets. Beneficiaries can redeem their entitled foodgrains at Fair Price Shops or authorised merchants using CBDC voucher codes. The system addresses challenges related to biometric authentication and e‑POS devices while ensuring traceable transactions.
Lieutenant Governor Kailashnathan called the launch a momentous day for Puducherry’s citizens, stressing that food is a fundamental right and that the reform eliminates middlemen and corruption. Chief Minister Rangasamy applauded the initiative, noting that direct CBDC transfers empower beneficiaries with self‑confidence and transparency.
The Department of Food and Public Distribution confirmed that the pilot will expand to Chandigarh and Dadra and Nagar Haveli before a nationwide rollout. The initiative builds on the JAM trinity and represents the next stage of digital reform in India’s welfare delivery.
