CBDC-based Digital Food Currency pilot for PMGKAY launched in Puducherry
Union Food Minister Pralhad Joshi launched a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot for Direct Benefit Transfer under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry on 26 February 2026.
Summary
Union Food Minister Pralhad Joshi launched a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot for Direct Benefit Transfer under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry on 26 February 2026, with Lieutenant Governor K. Kailashnathan and Chief Minister N. Rangasamy present. Puducherry, which already runs its PDS through the DBT model, will credit the food subsidy into beneficiaries' CBDC wallets instead of bank accounts. Digital coupons generated through the Reserve Bank of India are credited as programmable digital currency (e₹) and redeemed for foodgrains at Fair Price Shops or merchant outlets, addressing issues with biometric authentication and e-POS operations.
Key facts
- Date and place
- 26 February 2026, Puducherry
- Launched by
- Pralhad Joshi, Union Food Minister
- Scheme
- PMGKAY — food subsidy via DBT
- Mechanism
- RBI-generated digital coupons as programmable e₹ in CBDC wallets
- Redemption
- Fair Price Shops or merchant outlets
- Why Puducherry
- Already runs PDS on DBT model
Practice MCQs 3 questions
Where was the CBDC-based Digital Food Currency pilot under PMGKAY launched on 26 February 2026?
Show answer
Correct answer: C — Puducherry
The pilot was launched in Puducherry, which already implements PDS through the DBT model.
Under the Digital Food Currency pilot launched in February 2026, where is the PMGKAY food subsidy credited?
Show answer
Correct answer: D — Beneficiaries' CBDC (e₹) wallets
The food subsidy is transferred directly into beneficiaries' CBDC wallets as programmable e₹, in place of conventional bank accounts.
Who generates the digital coupons credited to beneficiaries under the CBDC-based Digital Food Currency pilot?
Show answer
Correct answer: A — Reserve Bank of India
Digital coupons generated through the Reserve Bank of India are credited to beneficiaries as programmable digital currency (e₹).