Central Bank Digital Currency (CBDC) System and Mandatory e-KYC for Ration

Key facts

• The Department of Civil Supplies has directed beneficiaries of Pradhan Mantri Garib Kalyan Yojana (PMGKY) to complete mandatory e-KYC registration for the Central Bank Digital Currency (CBDC) system.
• The CBDC system was introduced in the Union Territory of Puducherry on 26 February 2026, replacing the previous Direct Benefit Transfer (DBT) - Cash model.
• Under the new scheme, beneficiaries are issued a digital currency (e-wallet) that remains valid for a period of three months from the date of issuance.
• Beneficiaries must visit the nearest Common Service Centre (CSC) with their Aadhaar and Ration cards to complete the e-KYC process free of cost.
• The digital currency provided through the e-wallet is specifically intended for purchasing ration, such as rice, within the three-month validity period.