India Launches CBDC Pilot for Food Subsidy Distribution in Puducherry

The Union Food Ministry has launched a pilot project in Puducherry using the Reserve Bank of India's Central Bank Digital Currency (CBDC), or e-rupee, to distribute food subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). This digital token system allows beneficiaries to redeem food grains at fair price shops without biometric authentication, aiming to enhance transparency, reduce leakages, and enable real-time, traceable transactions. The pilot follows a similar initiative in Gujarat and may expand nationwide.