CBDC-based Public Distribution System (PDS)

Source: PIB

Context:

India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) has been launched in Gandhinagar, Gujarat.

It integrates the Digital Rupee into the ration distribution system to improve transparency and efficiency.

What is CBDC-based PDS?

A digitally enabled ration distribution mechanism where Central Bank Digital Currency (CBDC) is used within the Public Distribution System to manage transactions and delivery of subsidised food grains.

It combines:
✔ Welfare delivery
✔ Digital payments
✔ Automated distribution

Institutions Involved

Ministry of Consumer Affairs, Food and Public Distribution

• Nodal ministry for PDS implementation and reform.

Reserve Bank of India (RBI)

• Issues the Digital Rupee (CBDC).

Objectives

1. Eliminate leakages and corruption in PDS
2. Improve transparency in welfare delivery
3. Ensure secure access to subsidised food grains
4. Digitise government service delivery
5. Promote efficient public distribution governance