Government of India launches CBDC-based Digital Food Coupon Pilot in Gujarat

Union Home Minister and Minister of Cooperation Amit Shah launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) in Gandhinagar, marking a major step in digitising food subsidy delivery.

Key Announcements

• Launch of CBDC-based ration distribution using programmable digital currency (e₹).
• Inauguration of the ‘Annapurna’ machine, capable of dispensing 25 kg food grains in 35 seconds, ensuring accuracy and quality checks.

The pilot has been rolled out in districts of Gujarat—Ahmedabad, Anand, Valsad, and Surat—in collaboration with the Reserve Bank of India and the Government of Gujarat.

How CBDC-Based PDS Works

• Digital coupons issued by the RBI are credited directly to beneficiaries as programmable Digital Rupee (e₹).
• Beneficiaries redeem their entitlement at Fair Price Shops using QR codes or coupon codes.
• The system eliminates repeated biometric authentication and ensures secure, real-time, traceable transactions.

Benefits

• Eliminates corruption and middlemen in ration distribution.
• Ensures accurate delivery of foodgrains to beneficiaries.
• Provides real-time payment of margins to Fair Price Shop dealers.
• Improves transparency and accountability through digital audit trails.

Part of Larger PDS Reforms

The initiative builds on ongoing reforms by the Department of Food and Public Distribution, including:

• One Nation One Ration Card (ONORC) portability
• Aadhaar-enabled e-POS authentication
• Data-driven monitoring tools like the Rightful Targeting Dashboard
• Supply-chain optimisation via Ann Chakra
• Grievance redressal through Ann Sahayata