CBDC-Based Food Subsidy DBT Launched in Chandigarh for PMGKAY Beneficiaries

Union Agriculture Minister Shivraj Singh Chouhan on Friday launched a Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) system under which eligible Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) beneficiaries will receive their food subsidy directly into their CBDC wallets instead of conventional bank account transfers, and use it to purchase foodgrains from empanelled merchants through a secure, traceable and real-time digital payment mechanism. Chouhan said the initiative marks an important step towards bringing greater transparency, security, and timeliness to the Public Distribution System (PDS).

The pilot launched in Chandigarh is intended to serve as a model for adoption across the country. Under the new system, technological safeguards have been incorporated to ensure that beneficiaries can use the funds only for purchasing foodgrains and other essential food items, preventing the money from being diverted for other purposes. At the same time, beneficiaries will have greater choice. In addition to wheat and rice, they will be able to opt for pulses or other essential food commodities.

Punjab Governor Gulab Chand Kataria, Union Consumer Affairs, Food and Public Distribution Minister Pralhad Joshi and senior officials were also present at the launch. Chouhan said that the PMGKAY, which provides free foodgrains to more than 800 million people, represents one of the country’s major social security measures. He said the scheme is not merely about ensuring that people have enough food to eat. It also strengthens the economic position of families by reducing their household expenditure, allowing them to use their savings for children’s education and other essential needs.

He also said that there would be no compromise on farmers’ interests in matters relating to agricultural policy and food security. He said that all agreements entered into with countries across the world concerning farmers have been guided by the principle that national interest, farmers’ interests, and public interest remain paramount. "Sadly, the Opposition has a problem even with this," he remarked. Referring to the country’s strong stocks of wheat and rice, Chouhan said India is now capable of meeting its domestic requirements and exporting when necessary.

He said that under the Prime Minister’s leadership, the transparent delivery of PM-KISAN Samman Nidhi and other benefits will continue, with the protection and welfare of farmers remaining the government’s highest priority. Chouhan also strongly criticised disruptions in Parliament and the conduct of the Opposition, stressing that the dignity of democracy must be upheld. He said such disruptions amount to an insult to the Constitution and the democratic process, and that necessary decisions will be taken in the national interest.

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