Bhubaneswar: Union Home Minister Amit Shah on Sunday inaugurated India’s first Central Bank Digital Currency (CBDC)–based Public Distribution System (PDS), marking a major step towards digitising welfare delivery for nearly 80 crore beneficiaries under the National Food Security Act (NFSA).
Under the system, programmable e-Rupee tokens will be credited to beneficiaries’ RBI-linked digital wallets. These tokens are pre-programmed to be used only for specific commodities such as rice and wheat, in fixed quantities and at subsidised prices, ensuring targeted and transparent subsidy delivery.
Beneficiaries can redeem the digital currency at fair price shops using QR codes, Aadhaar-based OTP, or biometric authentication, with transactions tracked in real time to reduce leakages, fraud, and diversion of subsidies.
Shah also unveiled the ‘Annapurti’ Grain ATM, a Gujarat-developed automated dispensing machine capable of delivering up to 25 kg of grain in about 35 seconds, operational round-the-clock to improve access and convenience.
The pilot will initially cover four districts in Gujarat, with plans for a nationwide rollout within three to four years, officials said. The government aims to integrate programmable digital currency with welfare schemes to curb corruption, improve efficiency, and strengthen last-mile delivery.
Experts say the initiative could transform India’s subsidy ecosystem and position the country as a global leader in using digital currency for social welfare programs.
-OdishaAge
