SchemesFriday, 27 February 2026·The Hindu
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.