• ¨     Government of India will launch Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) for food subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) from 14 August 2026.

    ¨     The initiative will initially be launched in Chandigarh and Dadra and Nagar Haveli.

    ¨     The main objective is to make the payment of government food subsidies more digital, transparent, faster and targeted.

    ¨ Chandigarh and Dadra and Nagar Haveli will become the first Union Territories to fully digitise food subsidy distribution through programmable CBDC tokens.

    ¨     The initiative builds on earlier pilot implementations in Puducherry and Gujarat.

    ¨   Under the CBDC-based DBT model, eligible PMGKAY beneficiaries will receive food subsidies directly in their CBDC wallets instead of receiving funds through traditional bank accounts.

    ¨   The subsidy can then be used to purchase foodgrains from empanelled merchants and Fair Price Shops (FPSs).

    ¨     Under the pilot project, food subsidies will be credited directly to the CBDC wallets of identified beneficiaries in the form of programmable CBDC tokens.

    ¨     The initiative will promote the use of digital technology, transparency and targeted payments in the government subsidy distribution system.