India to Pilot Digital Rupee-Based Food Subsidy Distribution in Puducherry

The Indian government will pilot a Central Bank Digital Currency (CBDC)-based food subsidy distribution under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry starting February 26, 2026. The pilot aims to deliver programmable digital rupee tokens directly to beneficiaries' wallets, ensuring subsidies are used solely for foodgrain purchases. The initiative seeks to enhance transparency, reduce leakages, and test operational challenges before potential expansion to other regions. The launch will be led by Union Minister Pralhad Joshi alongside local officials.