SchemesFriday, 27 February 2026·The Hindu
Puducherry pilot uses CBDC tokens for PMGKAY food subsidy through RBI and PFMS
The Union government launched its first CBDC-enabled food subsidy pilot under PMGKAY in Puducherry on 26 February 2026 using programmable e₹ tokens.
Key highlights
Direct fact
On 26 February 2026, the Government of India launched its first CBDC-enabled food subsidy distribution pilot under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry, using programmable e₹ tokens in CBDC wallets.
Key specifics
- The pilot uses RBI’s Central Bank Digital Currency within the Direct Benefit Transfer (DBT) framework.
- Beneficiaries receive programmable e₹ tokens directly in CBDC wallets.
- The tokens can be redeemed only for entitled foodgrains at Fair Price Shops (FPS).
- The project is implemented with the Government of Puducherry, RBI, PFMS, and Canara Bank.
- The aim is leak-proof delivery, traceability, accountability, and faster subsidy transfer in the PDS.
Exam lens
Scheme and economy linkage, PMGKAY, CBDC, e₹, Puducherry, RBI, PFMS — TNPSC may ask the first pilot location, implementing agencies, and the DBT-to-CBDC shift.