CBDC-Based Food Subsidy Pilot under PMGKAY launched in Puducherry

Key facts

• The Government of India will launch a Central Bank Digital Currency (CBDC)-based Food Subsidy Distribution Pilot under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry on 26 February 2026.
• Union Minister for Consumer Affairs, Food and Public Distribution Shri Pralhad Joshi will inaugurate the pilot.
• Eligible PMGKAY beneficiaries will receive food subsidy as programmable CBDC tokens credited directly to their CBDC wallets issued by the Reserve Bank of India (RBI).
• The tokens will be redeemable exclusively for entitled foodgrains and usable only at authorised Fair Price Shops (FPS) and designated merchants.
• The pilot integrates the RBI-issued Digital Rupee into the Direct Benefit Transfer (DBT) framework to create a secure, instant, traceable and programmable subsidy distribution mechanism.
• Implementing partners include the Government of Puducherry, Reserve Bank of India (RBI), Public Financial Management System (PFMS) and Canara Bank as the designated banking partner.
• Following the Puducherry rollout, the pilot will be expanded in a phased manner to additional beneficiaries and other Union Territories based on performance and outcomes.