Government to launch CBDC-based Food Subsidy Distribution Pilot project under PMGKAY in Puducherry tomorrow
New Delhi, February 25
The Union government will launch a Central Bank Digital Currency (CBDC)-based Food Subsidy Distribution Pilot project under the Pradhan Mantri Garib Kalyan Anna Yojana in Puducherry tomorrow.
Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi will inaugurate the pilot project in the presence of Puducherry Lieutenant Governor K. Kailash nathan, Chief Minister N. Rangasamy and Minister of State for Consumer Affairs, Food and Public Distribution Nimuben Jayantibhai Bambhaniya.
Under the initiative, food subsidies will be credited to identified beneficiaries’ digital wallets in the form of Digital currency tokens issued by the Reserve Bank of India.
These CBDC tokens can be used only for purchasing entitled food grains at authorised merchants and Fair Price Shops.
The pilot is being implemented in coordination with the Government of Puducherry, RBI, Public Financial Management System and Canara Bank. It aims to enhance transparency, efficiency and targeted delivery of food subsidy