Union Home Minister Amit Shah launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System at Mahatma Mandir in Gandhinagar, Gujarat

Union Home Minister Amit Shah launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System at Mahatma Mandir in Gandhinagar, Gujarat

¨     Union Home Minister Amit Shah launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) at Mahatma Mandir in Gandhinagar, Gujarat.

¨     Gujarat has become the first state in the country to transfer PDS subsidy using an RBI-authorized Central Bank Digital Currency.

¨     Under this pilot project, more than 26,000 families in Gujarat will benefit. People in Ahmedabad, Surat, Anand and Valsad will receive digital tokens in their wallets to purchase ration through QR code or OTP.

¨     On this occasion, Mr. Shah also virtually inaugurated the ‘Annapurti’ Grain ATM in Ahmedabad, which can dispense up to 25 kilograms of grain in just 35 seconds.

Bank issuing the digital currency

¨     This system, developed by Punjab National Bank, aims to enhance transparency and reduce corruption by using digital tokens (e₹) for grain purchase.

¨     The pilot phase includes 26,333 families from Ahmedabad (Sabarmati zone), Surat, Anand and Valsad districts.

¨     Beneficiaries receive digital tokens in their wallets, which are used to purchase specific food items through Grain ATMs.

¨     The initiative aims to enhance the security and transparency of the food supply network, ensuring that subsidies effectively reach the rightful beneficiaries.

¨     The system utilizes existing e-PoS (electronic point of sale) machines under the PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) scheme, under which each person receives 5 kg of grain.

¨     This launch marks a major step towards digitizing the Public Distribution System (PDS) in India, moving towards a more secure, efficient, technology-driven and ultimately less corrupt distribution system.

 ‘Suposhit Garudeshwar’ Mission

¨     The Home Minister also launched the ‘Suposhit Garudeshwar’ Mission in Narmada district to tackle malnutrition. Additionally, two MoUs were signed with Care Ratings and the Consumer Education and Research Centre (CERC) to strengthen consumer protection and transparency in the state.

¨     Major phases in the development of the Public Distribution System (PDS):

¨     1940-1950s: Initiated during World War II; rationing began due to the Bengal famine (1940).

¨     1960s: Revived in the early 1960s to address food shortages before the Green Revolution. With the establishment of the FCI (1965), procurement and storage improved.

¨     1970-1980s: Became a universal scheme, providing subsidized food to all irrespective of income level.

¨     1992 (RPDS): In June 1992, the Revamped Public Distribution System (RPDS) was launched focusing on the poor in remote, hilly and inaccessible areas.

¨     1997 (TPDS): A major shift occurred with the Targeted Public Distribution System (TPDS), separating Below Poverty Line (BPL) and Above Poverty Line (APL) families.

¨     2000 (Antyodaya): Antyodaya Anna Yojana (AAY) was launched for the poorest families.

¨     2013 (NFSA): Under the National Food Security Act (NFSA), 75% of the rural and 50% of the urban population began receiving food grains as a legal right.

¨     Modern Era (ONORC): Under ‘One Nation One Ration Card’ (ONORC), beneficiaries can now obtain ration from any fair price shop across the country.

¨     It is currently the world’s largest distribution network administered by the Ministry of Consumer Affairs, Food and Public Distribution.