Union minister for agriculture, farmers’ welfare and rural development Shivraj Singh Chouhan on Friday launched the central bank digital currency (CBDC)-based direct benefit transfer (DBT) system in Chandigarh under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
Under the system, eligible beneficiaries will receive food subsidies tokens directly into their CBDC wallets rather than via 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.
Chandigarh and Dadra & Nagar Haveli are the first in the country to operationalise this system.
Chouhan, who launched the project in the presence of Punjab governor and UT administrator Gulab Chand Kataria, Union minister Pralhad Joshi and minister of state Nimuben Bambhaniya, said the initiative would ensure that the benefits reach intended beneficiaries directly and cannot be used for any other purpose.
“This is an important step towards bringing transparency, security and timeliness in the public distribution system,” he said, adding Chandigarh is an ideal testing ground for such schemes due to its administrative structure and civic awareness.
The new model also introduces flexibility for beneficiaries as households will be able to opt for pulses and other essential food items, apart from wheat and rice.
{{/usCountry}}The new model also introduces flexibility for beneficiaries as households will be able to opt for pulses and other essential food items, apart from wheat and rice.
{{/usCountry}}Chouhan urged officials to address operational challenges early to ensure smooth scaling. “Government should not just be visible in files, but in the lives of people,” he said, reiterating the broader governance approach of leveraging technology for citizen-centric delivery. He also highlighted the role of the Pradhan Mantri Garib Kalyan Anna Yojana in providing free foodgrains to over 800 million people, calling it one of India’s largest social security interventions.