- Under this system, eligible beneficiaries receive the food subsidy directly in their Digital Rupee (e₹) wallets instead of conventional bank-account transfers.
- Chandigarh and Dadra & Nagar Haveli became the first UTs to cover all eligible PMGKAY beneficiaries through programmable CBDC tokens. The rollout builds on earlier pilots conducted in Gujarat on 15 February 2026 and Puducherry on 26 February 2026.
- The Digital Rupee received is purpose-bound, meaning it can be used to purchase foodgrains from empanelled merchants. This provides instant settlement, better traceability, reduced cash handling and stronger monitoring of subsidy utilisation.
- CBDC or Central Bank Digital Currency is sovereign digital money issued by the Reserve Bank of India. Unlike UPI, which transfers money already held in bank accounts, CBDC itself is a digital form of central-bank money.
- The government sees this initiative as a proof of concept for nationwide adoption, potentially integrating the Digital Rupee with more welfare schemes while reducing subsidy diversion and strengthening financial inclusion.
Question
Q1. Which became the first Union Territories to operationalise food-subsidy transfers to all eligible PMGKAY beneficiaries through programmable CBDC tokens?a) Delhi and Puducherry
b) Chandigarh and Dadra & Nagar Haveli
c) Chandigarh and Lakshadweep
d) Puducherry and Ladakh
Answer: b) Chandigarh and Dadra & Nagar Haveli became the first Union Territories to cover all eligible PMGKAY beneficiaries through programmable CBDC tokens.
