Centre launches RBI-enabled digital food coupons for public distribution system in Gujarat
Under CBDC framework, digital coupons generated through RBI will be credited to beneficiaries as programmable digital currency
The Centre on Sunday launched a Central Bank Digital Currency (CBDC)-based public distribution system (PDS) in Gujarat’s Gandhinagar.
Union Consumer Affairs Minister Pralhad Joshi said the introduction of CBDC in the PDS marks a significant milestone towards ensuring transparency, efficiency, and beneficiary empowerment in India’s food security architecture.
He said India’s PDS—the largest food distribution system in the world serving more than 80 crore beneficiaries—continues to evolve through technology-driven reforms.
Giving the slogan “Har Dana, Har Rupiya, Har Adhikar”, the minister said the initiative will enhance awareness of entitlements, simplify access, and strengthen accountability in the delivery of subsidised foodgrains.
Joshi said under the CBDC framework, digital coupons generated through the Reserve Bank of India will be credited directly to beneficiaries as programmable digital currency.
“Beneficiaries can redeem their entitled quantity of foodgrains at Fair Price Shops (FPS) using CBDC coupon or voucher codes. The system will address challenges related to biometric authentication and e-POS operational issues while ensuring secure, traceable, and real-time transactions. The pilot will soon be expanded to the Union Territories of Chandigarh, Puducherry, and Dadra & Nagar Haveli and Daman & Diu,” he added.
Speaking on the occasion, Union Home Minister Amit Shah said the CBDC pilot represents an important extension of the digital India vision into the public distribution system.
Over the past several years, the Department of Food and Public Distribution has undertaken extensive digital transformation of India’s food security ecosystem. Key initiatives include end-to-end digitisation of ration cards and nationwide portability under the One Nation One Ration Card (ONORC) framework, deployment of e-POS devices for Aadhaar-enabled authentication and real-time transaction capture, and implementation of data-driven validation through the Rightful Targeting Dashboard.
