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CBDC-Based DBT Launched in Chandigarh and Dadra & Nagar Haveli
The Centre launches a Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) of food subsidies under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Chandigarh and Dadra & Nagar Haveli. Chandigarh and Dadra & Nagar Haveli become the first Union Territories to implement this system at scale, marking the first large-scale use of CBDC in a Central Government welfare programme.
CBDC-Based DBT of Food Subsidy under PMGKAY:
| Dimension | Key Details |
|---|---|
| Transfer mechanism | Eligible PMGKAY beneficiaries receive subsidies directly in their Digital Rupee wallets instead of conventional bank accounts. |
| Use restriction | The subsidy is governed by a purpose-bound condition, meaning it can be used only to purchase food-grains from empanelled merchants. |
| Payment modes by device type | Smartphone users make payments through QR codes, and feature-phone users use an OTP-based payment mechanism. |
| CBDC transaction features | CBDC enables real-time, secure, and traceable transactions. |
| Key objectives | The rollout provides for these objectives: instant transfer of subsidies; reduced dependence on cash handling; prevention of leakage, diversion, and misuse; improved transparency and real-time monitoring; subsidies reaching beneficiaries without intermediaries. |
| Previous pilots referenced | Experience from Gujarat and Puducherry pilots supports expansion to Chandigarh and Dadra & Nagar Haveli. |
| Linked PDS reforms listed | The rollout builds on existing PDS reforms such as Aadhaar-based authentication, electronic PoS systems, digitised ration cards and beneficiary databases, One Nation One Ration Card (ONORC), and online supply-chain management. |
| PMGKAY beneficiary coverage | More than 80 crore beneficiaries receive free foodgrains under PMGKAY. |