SchemesFriday, 27 February 2026·The Hindu / PIB

Puducherry hosts India’s first CBDC-based food subsidy pilot under PMGKAY

On 26 February 2026, the Union Government launched the first CBDC-enabled food subsidy pilot under PMGKAY in Puducherry 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 the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry.

Key specifics

  • Beneficiaries receive programmable e₹ tokens in CBDC wallets.
  • The tokens can be redeemed only for entitled foodgrains at Fair Price Shops (FPS).
  • The pilot integrates RBI’s Central Bank Digital Currency with the Direct Benefit Transfer (DBT) framework.
  • The project is implemented with the Government of Puducherry, RBI, PFMS, and Canara Bank.
  • The stated aim is leak-proof delivery, traceability, and accountability in the Public Distribution System (PDS).

Exam lens

Scheme and economy linkage question: PMGKAY, CBDC, e₹, DBT, PDS, Puducherry, RBI, PFMS, Canara Bank; TNPSC may ask which state/UT hosted the first pilot and what makes the subsidy programmable.

PMGKAYCBDCe₹Puducherry
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