E-KYC registration has been made mandatory for beneficiaries of the Pradhan Mantri Garib Kalyan Anna Yojana in Puducherry

¨     E-KYC registration was made mandatory from 26 February 2026 for beneficiaries of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in Puducherry.

¨     The rule was implemented under the Central Bank Digital Currency (CBDC)-based food subsidy distribution scheme.

¨     The scheme uses digital currency e₹ for food subsidy distribution.

¨     The new system replaced the existing Direct Benefit Transfer (DBT)-cash model in the Union Territory.

¨     Central Bank Digital Currency (CBDC) is the digital form of sovereign currency issued by a central bank.

¨     In India, the digital currency is known as e₹.

¨     The e₹ is issued by the Reserve Bank of India.

¨     Puducherry’s CBDC-based food subsidy pilot project was launched on 26 February 2026.

¨     Beneficiaries receive an e-wallet under the scheme.

¨     The e-wallet remains valid for three months from the date of issue.

¨     The digital currency can be used only at fair price shops and authorised merchant outlets.

¨     It is used for purchasing rice and other food grains.

¨     Beneficiaries who have not completed the e-KYC process must visit Common Service Centres (CSCs) with Aadhaar card and ration card.

¨     The e-KYC process at CSCs is provided free of cost.

¨     The Central Government made e-KYC mandatory every five years for all ration card holders.

¨     The provision was introduced under the Targeted Public Distribution System (Control) Amendment Order, 2025.

¨     The rule came into effect on 22 July 2025.