India Launches CBDC Pilot for Food Subsidy Distribution Under PMGKAY 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) to distribute food subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). This digital currency-based system enables beneficiaries to redeem food grains via programmable digital tokens at fair price shops, aiming to enhance transparency, reduce leakages, and address biometric authentication challenges. Following pilots in Gujarat and Puducherry, the government plans to expand the initiative nationwide.