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
- Eliminate leakages and corruption in PDS
- Improve transparency in welfare delivery
- Ensure secure access to subsidised food grains
- Digitise government service delivery
- Promote efficient public distribution governance
