Digital Rupee Pilot for PMGKAY Food Subsidy in Puducherry
Why in the news
The Centre is trialling food subsidy payment in digital rupee form in Puducherry from 26 February, moving toward traceable, purpose-bound delivery under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
Pilot goals
- Cut PDS leakages and raise transparency and accountability.
- Ensure money is spent only on food; subsidy is better targeted and fully traceable.
- Test readiness before going nationwide.
About CBDC
- Electronic version of a nation’s sovereign currency, issued by its central bank.
- India’s is the digital rupee from the RBI; legal tender like cash.
About PMGKAY
- Free or subsidised grain under the National Food Security Act, for over 800 million people.
- Runs through the PDS and, in select cases, Direct Benefit Transfer.
Exam angle
- Pilot place: Puducherry; CBDC issuer: RBI.