Government of India Launches CBDC-Based Direct Benefit Transfer under PMGKAY in Chandigarh and Dadra & Nagar Haveli

By

 The Government of India launched the Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in the Union Territories of Chandigarh and Dadra & Nagar Haveli. 

Under the new system, the food subsidy will be transferred directly into the beneficiary’s Digital Rupee wallet, instead of a conventional bank account. The beneficiary can then use the purpose-bound digital subsidy to purchase foodgrains from empanelled merchants through a secure and traceable digital payment mechanism.

The system provides:

  • Instant transfer of food subsidy;
  • Purpose-bound use of the subsidy for foodgrains;
  • Digital records of transactions for better traceability;
  • Reduced dependence on cash withdrawal and cash handling;
  • Greater transparency and monitoring of subsidy utilisation; and
  • Easier digital payments for merchants.

The system has also been designed to improve accessibility. Smartphone users can make payments through QR codes, while feature-phone users can access the facility through OTP-based mechanisms.

With this launch, Chandigarh and Dadra & Nagar Haveli have become the first State/Union Territory in the country to operationalize food subsidy transfers to all eligible PMGKAY beneficiaries in the form of programmable Central Bank Digital Currency (CBDC - Digital Rupee) tokens directly into their CBDC wallets. The initiative builds on earlier pilots conducted in Gujarat and Puducherry. The CBDC-based food subsidy delivery pilot was first launched in Gujarat on 15 February 2026, followed by Puducherry on 26 February 2026. Drawing on the experience and learnings from these pilots, the Government of India has now expanded the initiative to Chandigarh and Dadra & Nagar Haveli.

Under this model, beneficiaries receive food subsidy directly into their CBDC wallets instead of conventional bank account transfers. The subsidy can then be used to purchase foodgrains from empanelled merchants through a secure, traceable and real-time digital payment mechanism. The system is designed to reduce leakages, diversion and cash handling, while enabling instant transfer of benefits and stronger monitoring of subsidy utilization.

The initiative is the first large-scale application of CBDC in Central Government welfare programmes. By combining the strengths of DBT with the capabilities of CBDC, the model seeks to ensure that public funds reach beneficiaries instantly and can be utilized for their intended purpose through a transparent digital mechanism.

The rollout is envisaged as a proof-of-concept for the nation and a scalable template for other States and Union Territories. It is expected to provide useful operational experience in integrating CBDC with welfare schemes and to support the Government’s vision of strengthening Digital Public Infrastructure and delivering citizen-centric services through innovative technologies.

PIB

Comments

Post a Comment

Popular posts from this blog

Rural Local Bodies in Kerala Receive Over ₹260 Crores as First Instalment of XV Finance Commission Grants

By
The Union Government has released ₹260.20 crores to Rural Local Bodies in Kerala as XV Finance Commission grants for the Financial Year 2025- 26. The amount represents the first instalment of Untied Grants and covers all 14 District Panchayats, 152 Block Panchayats and 9,414 Gram Panchayats in the State. The Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommend the release of XV FC Grants for RLBs/PRIs, which is subsequently released by the Ministry of Finance in two installments during a financial year. Untied Grants are meant to be utilized by Rural Local Bodies/PRIs for location-specific felt needs under the 29 subjects listed in the Eleventh Schedule of the Constitution, except for salaries and other establishment expenditures. Tied Grants, on the other hand, are earmarked for basic services relating to (a) sanitation and maintenance of ODF status including management and treatment of household waste, human excreta and fec...
Read more

ISRO developing semi-cryogenic engine working on LOX Kerosene propellant

By
ISRO is developing a 2000 kN thrust semi-cryogenic engine working on an LOX Kerosene propellant combination for enhancing the payload capability of LVM3 and for future launch vehicles. Liquid Propulsion Systems Centre (LPSC) is the lead centre for the development of semi-cryogenic propulsion systems with the support of other launch vehicle centres of ISRO. The assembly and testing of the propulsion modules were done at the ISRO propulsion complex (IPRC), Mahendragiri. As part of the engine development, a pre-burner ignition test article, which is a full complement of the engine power head system excluding the turbopumps is realized. The first ignition trial was conducted successfully on May 2, 2024, at semi cryo integrated engine test facility (SIET) at IPRC, Mahendragiri, which was dedicated to the nation recently by the honorable Prime Minister of India. Smooth and sustained ignition of the preburner is demonstrated which is vital for the starting of the semi-cryogenic engine. Semi-c...
Read more