Digital Food Currency: Programmable CBDC Pilot for PDS
Why in the news
The Centre is readying a pilot of a Digital Food Currency to modernise the PDS.
What it is
- A programmed edition of the e-Rupee (CBDC) from RBI.
- Beneficiaries get digital food coupons instead of grain or cash.
- Coupons are valid only for foodgrain and only at authorised Fair Price Shops.
| Institution | Role |
|---|---|
| RBI | Regulator |
| Consumer Affairs, Food and Public Distribution Ministry | Implementing ministry |
| NPCI | Technology and payments support |
| FCI | Supply-side integration |
Objectives
- Keep the subsidy strictly for foodgrains, with no diversion.
- Real-time tracking of distribution.
- Fewer biometric authentication failures at ration shops.
Exam angle
- Base currency: e-Rupee; system: PDS; tech partner: NPCI.