Government launches CBDC-based Digital Food Currency pilot

The Government of India has launched a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot for Direct Benefit Transfer (DBT) under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry. It was inaugurated on 26th February, 2026 at Puducherry by Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi in the presence of Lieutenant Governor of Puducherry, K. Kailashnathan; Chief Minister of Puducherry, N. Rangasamy.

Presiding over the occasion, Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi, said that the introduction of CBDC in the Public Distribution System marks a transformative milestone in India’s food security architecture. He emphasized that integration of Central Bank Digital Currency (CBDC) into PDS will enhance transparency, efficiency and beneficiary empowerment, ensuring that over 80 crore beneficiaries receive their entitlements with greater clarity and accountability.

Speaking on this occasion, Hon’ble Lieutenant Governor of Puducherry, K. Kailashnathan, said that today marks a momentous day for the underprivileged and hardworking citizens of Puducherry.

Speaking on the occasion,N Rangasamy, Chief Minister of Puducherry applauded the new initiative of CBDC bringing in change in delivery of foodgrains and empowering citizens of Puducherry.

Addressing at the launch event of CBDC in PDS, Secretary, Department of Food & Public Distribution stated that rollout of CBDC in Puducherry for distribution of subsidy under PMGKAY marks a significant step towards ensuring instant, transparent and efficient transfer of benefits directly to beneficiaries. (UPDATED ON 27TH FEBRUARY 2026)