News: Chandigarh & Dadra and Nagar Haveli became the first UTs to operationalise CBDC-based food subsidy transfers for all eligible PMGKAY beneficiaries.

CBDC-based DBT

• Transfer: Food subsidy directly into beneficiaries’ Digital Rupee (e₹) wallets.
• Payments: Through QR codes on smartphones or OTP on feature phones.
• First: Largest-scale application of CBDC in a Central Government welfare scheme.
• Earlier Pilots: Gujarat & Puducherry.

Significance

• Financial inclusion through wallet-based payments.
• Transparency & traceability of subsidy delivery.
• Reduces leakages, diversion and middlemen.
• Integrates CBDC with Digital Public Infrastructure (DPI).
• Supports PDS modernisation.

PMGKAY

• Launched: 2020; provides free foodgrains to vulnerable households.
• Ministry: Consumer Affairs, Food & Public Distribution.
• Coverage: ~81.35 crore NFSA beneficiaries.
• Entitlement: 5 kg/person/month (Priority Households) and 35 kg/household/month (AAY).
• Extension: 5 years from January 2024.