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4w ago

India to Pilot Digital Rupee for Food Subsidies in Two Union Territories

Officials say the pilot will make subsidies traceable, limit diversion through purpose‑bound e‑rupee wallets, generate lessons for wider rollout.

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The initiative marks a shift in welfare delivery — from physical distribution of subsidised foodgrains to DBT and now to purpose-bound digital delivery through CBDC. (HT File)
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Overview

  • The Centre announced the rollout for Chandigarh and Dadra & Nagar Haveli is scheduled for Friday, August 14, 2026, making the two Union Territories the first to fully deliver PMGKAY benefits via the RBI’s digital rupee.
  • Under the scheme beneficiaries will receive food subsidies in purpose‑bound CBDC wallets that can only buy entitled foodgrains from empanelled merchants using QR‑code, real‑time payments.
  • The government says the model is designed to reduce cash handling, speed transfers to recipients, and create a traceable payment record that can curb diversion and leakages in the public distribution chain.
  • The launch is being organised by the Department of Food and Public Distribution with the Chandigarh administration and will be attended by senior central and local ministers, with Dadra & Nagar Haveli to be launched remotely from Chandigarh.
  • The move builds on earlier CBDC pilots in Gujarat and Puducherry and Chandigarh’s 2015 shift to bank DBT, and officials present the current roll‑out as a pilot to test operations, but key details such as beneficiary counts, vendor partners and performance metrics have not been disclosed.