The Union government has launched India’s first Central Bank Digital Currency-based Public Distribution System in Gujarat. The pilot aims to transfer food subsidy benefits through digital tokens, improve transparency, and reduce leakages in ration delivery. It also marks Gujarat as the first state to use Reserve Bank of India-authorised CBDC for PDS subsidy transfer.
First CBDC-Based PDS Pilot
The new system was launched at Mahatma Mandir in Gandhinagar. Under the pilot, eligible families receive digital wallet tokens with details of item name, quantity, and price. Beneficiaries can use QR codes or OTPs to collect ration from designated outlets. The project begins with more than 26,000 families in Ahmedabad, Surat, Anand, and Valsad.
Focus on Transparency and Corruption Control
The digital token model is designed to reduce corruption in the Public Distribution System. It aims to make subsidy delivery more accountable and traceable. The government has presented the initiative as part of its broader effort to strengthen welfare delivery through technology. Officials said the system can improve efficiency in food distribution and limit diversion of subsidised grain.
Expansion Plans and Related Initiatives
The Consumer Affairs Ministry said the model will soon be expanded to Union Territories including Chandigarh, Puducherry, and Dadra and Nagar Haveli. Alongside the launch, the ‘Annapurti’ Grain ATM was inaugurated in Ahmedabad. It can dispense up to 25 kilograms of grain in 35 seconds. The ‘Suposhit Garudeshwar’ mission was also launched to address malnutrition in Narmada district. Two MoUs were signed with CARE Ratings and the Consumer Education and Research Centre to strengthen consumer protection and transparency.
Last Modified: April 28, 2026