India Launches CBDC-Based Food Subsidy Pilot Under PMGKAY in Puducherry

Category : National Published on: March 02 2026

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The Government of India will roll out a CBDC-based Food Subsidy Distribution Pilot under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry on 26 February 2026. The initiative will use the Digital Rupee (CBDC) to transfer food subsidies directly to beneficiaries’ digital wallets. These programmable tokens can only be used at authorized Fair Price Shops, ensuring purpose-bound usage.
The pilot aims to integrate digital currency into India’s subsidy system, improving transparency, reducing leakages, and enabling secure, traceable transactions. The Reserve Bank of India, Public Financial Management System, and Canara Bank are key partners in the implementation.
Union Minister Pralhad Joshi will inaugurate the pilot, joined by Puducherry’s Lt. Governor and Chief Minister. The CBDC-based subsidy model is expected to enhance accountability, empower beneficiaries, and strengthen India’s digital public infrastructure while modernizing the Public Distribution System.