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Govt launches CBDC-based digital food coupon pilot in Gujarat to modernise PDS
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Wednesday, 18 February, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Government of India has rolled out a Central Bank Digital Currency (CBDC)-based digital food coupon pilot in Gujarat, aiming to modernise the Public Distribution System (PDS) and enhance transparency in subsidy delivery. The initiative was inaugurated in Gandhinagar in the presence of Amit Shah, along with Union Food Minister Pralhad Joshi and Gujarat Chief Minister Bhupendra Patel.
The pilot programme leverages the digital rupee (e?), issued by the Reserve Bank of India, to distribute food subsidies directly to beneficiaries through RBI-enabled digital wallets. These programmable digital coupons can be redeemed at authorised Fair Price Shops using QR codes or voucher codes, reducing reliance on physical coupons and minimising biometric authentication challenges.
Officials stated that the CBDC-based system will help tackle persistent issues such as e-POS connectivity failures, authentication errors and leakages in the subsidy chain. By creating a secure, traceable digital transaction record, the initiative aims to ensure that benefits reach the intended recipients efficiently and transparently.
In its initial phase, the pilot is being implemented in select districts of Gujarat, including Ahmedabad, Surat, Anand and Valsad. Authorities indicated that the programme may soon expand to other regions and Union Territories based on performance and feedback.
India’s Public Distribution System, the world’s largest food security network, serves millions of beneficiaries. The integration of CBDC technology marks a significant reform in welfare delivery, aligning with the government’s broader digital governance strategy. If successful, the initiative could pave the way for similar technology-driven models in other social assistance schemes across the country.
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