Source: PIB
Context:
On 15 February 2026, the Union Home Minister Amit Shah launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) in Gandhinagar, Gujarat.
It aims to make ration distribution transparent, modern, and leakage-free using the Digital Rupee.
What is CBDC-Based PDS?
A digitised ration distribution system where beneficiaries receive programmable digital coupons (e₹) issued by the Reserve Bank of India and redeem them at Fair Price Shops (FPS) to obtain subsidised food grains.
Institutional Collaboration
- Government of India
- Reserve Bank of India (RBI)
- Government of Gujarat
How the System Works
- RBI generates programmable CBDC (e₹) in the form of digital coupons.
- Coupons are credited directly to beneficiaries.
- Beneficiaries redeem coupons at Fair Price Shops.
- Foodgrains are issued against digital vouchers.
Purpose
- Ensure transparency in ration distribution
- Reduce leakages and diversion of food grains
- Modernise welfare delivery
- Improve efficiency of PDS
- Address biometric authentication and e-POS failures
Key Features
✔ Programmable Digital Rupee (e₹) for welfare delivery
✔ Direct digital coupon transfer
✔ Redeemable at Fair Price Shops
✔ Reduced dependency on biometric authentication
✔ Improved tracking and monitoring
✔ Transparent subsidy delivery
