Gujarat Launches India’s First CBDC-Based Public Distribution System | 17 Feb 2026

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.