Centre Launches Digital Rupee Food Subsidy in Chandigarh, Dadra & Nagar Haveli

The Centre is set to launch the Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Chandigarh and Dadra & Nagar Haveli on August 14.

This initiative will enable eligible PMGKAY beneficiaries to receive their food subsidy directly into their CBDC wallets, instead of conventional bank account transfers. The subsidy can then be used to purchase foodgrains from empanelled merchants through a secure, traceable, and real-time digital payment mechanism.

Union Consumer Affairs, Food, and Public Distribution Minister Pralhad Joshi, Punjab Governor and Chandigarh Administrator Gulab Chand Kataria, and Union Agriculture Minister Shivraj Singh Chouhan will be present at the launch event.

Chandigarh and Dadra & Nagar Haveli are the first Union Territories to operationalise food subsidy transfers in the form of programmable Central Bank Digital Currency (CBDC – Digital Rupee) tokens directly into beneficiaries' CBDC wallets. This rollout builds on earlier pilot implementations in Puducherry and Gujarat.

The launch of CBDC-based DBT under PMGKAY marks a significant milestone in India's journey towards building a modern, transparent, and technology-driven welfare delivery ecosystem. The CBDC-enabled DBT model aims to ensure transparent and end-to-end traceable delivery of public funds, reducing leakages and diversion associated with traditional subsidy delivery mechanisms.

The initiative will facilitate instant and secure transfer of benefits to beneficiaries, promoting financial inclusion through simple wallet-based transactions. It will also strengthen accountability and real-time monitoring of subsidy utilisation.

The Centre's decision to launch the CBDC-based DBT in Chandigarh and Dadra & Nagar Haveli is a step towards achieving a digital and cashless economy. The use of digital currency is expected to increase transparency and reduce corruption in the subsidy distribution system.

The PMGKAY scheme was launched in 2020 to provide foodgrains to poor families during the COVID-19 pandemic. The scheme has been extended several times, and the Centre has now decided to use digital currency to distribute subsidies to beneficiaries.

The launch of the CBDC-based DBT is a significant development in the country's efforts to promote digital payments and reduce cash transactions. The initiative is expected to benefit millions of people in Chandigarh and Dadra & Nagar Haveli, and will be closely watched by other states and union territories.

In conclusion, the Centre's decision to launch the CBDC-based DBT in Chandigarh and Dadra & Nagar Haveli is a major step towards achieving a digital and cashless economy. The initiative is expected to increase transparency, reduce corruption, and promote financial inclusion, and will be an important milestone in India's journey towards building a modern and technology-driven welfare delivery ecosystem.