The Central Bank Digital Currency-based Food Subsidy Distribution programme of the Union Government was launched in Puducherry today. Inaugurating the pilot project under the Pradhan Mantri Garib Kalyan Anna Yojana, Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi said that CBDC-based Direct Benefit Transfer marks a significant milestone in ensuring transparency, efficiency, and empowerment of beneficiaries.

The Minister said that Prime Minister Narendra Modi envisions that every grain, every rupee and every entitlement should reach the rightful beneficiary. He added that the reform would pave the way for a fully transparent, leakage-free, and technology-driven public distribution system. Mr. Joshi informed that following pilot projects in Ahmedabad and now Puducherry, the scheme will soon be rolled out in Chandigarh and Dadra and Nagar Haveli before being expanded across the country. He also stated that more than 25 crore people have been lifted out of multidimensional poverty in the last eleven years.

Puducherry Lieutenant Governor K. Kailashnathan, Chief Minister N. Rangasamy, Legislative Assembly Speaker R. Selvam, ministers, and senior officials were also present. Under the initiative, food subsidy will be credited to identified beneficiaries’ digital wallets in the form of digital currency tokens issued by the Reserve Bank of India. These CBDC tokens can be used exclusively for purchasing entitled foodgrains from authorised merchants and Fair Price Shops. The pilot project is being implemented in coordination with the Government of Puducherry, the Reserve Bank of India, the Public Financial Management System and Canara Bank.