The government will launch a pilot project for distributing food subsidies based on a Central Bank Digital Currency (CBDC) under the Pradhan Mantri Garib Kalyan Anna Yojana in Puducherry tomorrow.
Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi, will inaugurate the pilot project in the presence of Puducherry Lieutenant Governor, K. Kailashnathan, Chief Minister, N. Rangasamy, and Minister of State for Consumer Affairs, Food and Public Distribution, Nimuben Jayantibhai Bambhaniya.
Under this initiative, food subsidies will be credited to the digital wallets of identified beneficiaries in the form of digital currency tokens issued by the Reserve Bank of India. These CBDC tokens can only be used to purchase entitled food grains at authorized merchants and Fair Price Shops.
The pilot is being implemented in coordination with the Government of Puducherry, the RBI, the Public Financial Management System, and Canara Bank. It aims to enhance transparency, efficiency, and targeted delivery of food subsidies.