2 weeks ago
Govt to expand CBDC food coupons for subsidy distribution
Have you ever used a coupon to get something free, like a school lunch?
The government in India gives free food like rice and wheat to millions of people who need it.
Now, instead of paper tickets, it wants to use special digital money that only exists on phones and computers.
This digital money works like a coupon and can be used only to collect the free food items.
People scan a code at their local fair price shop to receive their grains.
The government says this will stop food from being stolen or lost along the way.
It will also be easier for people because they will not need a fingerprint check every time.
A few places, including the city of Chandigarh, have already started using these digital coupons.
The government plans to use them in more places gradually, so everyone can get free food easily and safely.
The food ministry plans to gradually shift from e-PoS machines to RBI CBDC-based digital food coupons for free foodgrain distribution.
CBDC food coupon pilots are running in Gujarat, Chandigarh, Puducherry, and Dadra and Nagar Haveli.
Chandigarh beneficiaries receive Rs 186 per head per month in digital wallets instead of 5 kg of rice or wheat.
The digital currency aims to cut leakages and resolve biometric authentication and e-PoS operational issues.
PMGKAY currently provides 5 kg of grains free to 810 million people through about 0.5 million fair price shops at an annual subsidy of about Rs 2.4 lakh crore.
- Who
- The Indian food ministry, food minister Prahlad Joshi, agriculture minister Shiraj Singh Chouhan, and PMGKAY ration card beneficiaries.
- What
- The government plans to scale up use of the RBI's central bank digital currency (CBDC) as digital food coupons for free foodgrain distribution.
- Where
- India - Gujarat, Chandigarh, Puducherry, and Dadra and Nagar Haveli.
- When
- Pilots began in Gujarat earlier this year; the CBDC food coupon rollout was launched in Chandigarh on Friday.
- Why
- To reduce leakages and diversion of foodgrains, address biometric authentication and e-PoS issues, and ensure secure, traceable, real-time transactions.
Key facts
- Scheme
- Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)
- Total beneficiaries
- 810 million people receiving 5 kg of grains per month
- Fair price shops
- About 0.5 million FPSs with e-PoS machines
- Annual subsidy outlay
- About Rs 2.4 lakh crore
- Chandigarh entitlement
- Rs 186 per head per month in digital wallets in lieu of 5 kg rice/wheat
- Pilot regions and beneficiaries
- Chandigarh (60,000), Puducherry (over 0.1 million), Dadra and Nagar Haveli (13,000)
- DBT funds released FY26
- Rs 200 crore
Quotes
Government food ministry official
Official of the food ministry
“We will gradually move from providing free foodgrains to beneficiaries using electronic – point of sale (ePoS) machines at Fair Price Shops (FPS) to CBDC based food coupons for reducing leakages and diversion of foodgrains”
financialexpress.com











