2 weeks ago

Govt to expand CBDC food coupons for subsidy distribution

Govt to expand CBDC food coupons for subsidy distribution
Govt to scale up use of digital currency for food subsidy disbursal · financialexpress.com

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.

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

Sources

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