National Current Affairs
Gujarat Launches India’s First CBDC-Based Public Distribution System
- 17 Feb 2026
- 2 min read
Why in News?
The Government of Gujarat has launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) aimed at transforming food subsidy delivery using digital currency.
Key Points:
- First in India: India launched its first CBDC-enabled public distribution system in Gujarat, using Reserve Bank of India (RBI)-authorised digital currency tokens for subsidy delivery.
- Digital Tokens: Under the system, beneficiaries receive CBDC-linked digital coupons or tokens in their wallets.
- This can be used to redeem subsidised foodgrains at fair price shops using QR codes or Aadhaar-based OTP authentication.
- ATM for 24×7 Access: A ‘Annapurti Grain ATM’ was introduced in the Sabarmati zone (Ahmedabad), capable of dispensing up to 25 kg of food grains in 35 seconds.
- The new PDS model also includes distribution of essential commodities such as tur dal and chana in 1-kg sealed packs instead of loose supplies to maintain hygiene and quality.
- Significance: By using CBDC tokens, the system aims to improve transparency, reduce corruption in the food supply chain, ensure traceability of transactions, and strengthen accountability in subsidy delivery.
- Developed by: The CBDC platform has been developed by Punjab National Bank under the RBI-authorised framework, enabling secure and traceable transactions for beneficiary welfare.
| Read More: Public Distribution System, Transparency and accountability, Reserve Bank of India (RBI) |
