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Digital Food Currency: Programmable CBDC Pilot for PDS

30 January 20261 min read
NATIONAL AFFAIRSDigital FoodCurrency:ProgrammableCBDC Pilot for PDS30 January 2026safalsetu.com

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.
InstitutionRole
RBIRegulator
Consumer Affairs, Food and Public Distribution MinistryImplementing ministry
NPCITechnology and payments support
FCISupply-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.

Test yourself

1. The Digital Food Currency pilot is a programmable version of which digital currency?

It is a programmed form of the RBI-issued e-Rupee.

2. Digital food coupons under the pilot can be redeemed only at which outlets?

Coupons are redeemable only at authorised FPS.

3. Which body provides technology and payments support for the Digital Food Currency pilot?

NPCI supports technology and payments.

This topic is part of Daily Current Affairs 29 & 30 January 2026 (16 topics).

All topics of the dayDay quizJanuary 2026

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