Government of India Launches CBDC-Based Digital Food Coupon Pilot in Gujarat to Revolutionize PDS.
Ahmedabad:
The Government of India has launched a Central Bank Digital Currency (CBDC)-based Digital Food Coupon pilot in Gujarat, marking a major step toward transparency, efficiency, and beneficiary empowerment in the country’s Public Distribution System (PDS). The pilot was inaugurated today by Union Home Minister Amit Shah at an event attended by Union Minister for Consumer Affairs, Food and Public Distribution, Prahlad Joshi, Gujarat Chief Minister Bhupendra Patel, and Minister of State for Consumer Affairs, Food and Public Distribution, Nimuben Jayantibhai Bambhaniya.
Addressing the gathering, Union Minister Prahlad Joshi described the initiative as a milestone reform in PDS, emphasizing that India’s food security system—the largest in the world serving over 80 crore beneficiaries—is evolving through technology-driven reforms. Launching the pilot under the slogan “Har Dana, Har Rupiya, Har Adhikar”, he highlighted that the CBDC-based digital food coupons would simplify access to subsidized foodgrains, increase awareness of entitlements, and strengthen accountability in delivery.
Under the CBDC framework, programmable digital currency (e₹) generated by the Reserve Bank of India will be credited directly to beneficiaries. They can redeem their entitled quantity of foodgrains at Fair Price Shops (FPS) using digital coupons or QR codes. This system addresses issues with biometric authentication and e-POS operations while ensuring secure, traceable, and real-time transactions. Joshi added that after Gujarat, the pilot will expand to the Union Territories of Chandigarh, Puducherry, and Dadra & Nagar Haveli and Daman & Diu.
The pilot has been launched in Ahmedabad, Anand, Valsad, and Surat districts in collaboration with the Reserve Bank of India and the Government of Gujarat. Subsequent phases are planned for scale-up across other Union Territories to ensure nationwide adoption of CBDC-enabled PDS.
Union Home Minister Amit Shah called the CBDC pilot a key extension of the Digital India vision into public welfare delivery. He praised the stakeholders for making the system more transparent, leak-proof, and corruption-free. Shah noted that with nearly half of the world’s digital transactions taking place in India, integrating CBDC into PDS would enhance governance under the principle of “Minimum Government, Maximum Governance.” He encouraged other States and Union Territories to adopt CBDC for efficient food distribution.
Under this digital system, beneficiaries’ wallets will carry programmable Digital Rupees, enabling seamless QR code or coupon-based transactions at FPS. This eliminates repeated biometric authentication, improves transaction efficiency, and creates a real-time digital trail, enhancing transparency, monitoring, and accountability. FPS dealers will also receive their margins instantly, establishing a mutually beneficial ecosystem.
The CBDC-based Digital Food Coupon pilot represents the next stage in India’s digital transformation of food security, following initiatives like end-to-end digitization of ration cards, One Nation One Ration Card portability, deployment of e-POS devices, and digital supply-chain optimization through platforms like Ann Chakra. Strengthened grievance redressal mechanisms such as Ann Sahayata have further reinforced transparency and citizen-centric service delivery.
The pilot is expected to significantly enhance last-mile service delivery, integrate technology with welfare distribution, and create a more accountable and efficient PDS framework for the country.
The inauguration was attended by Gujarat Deputy Chief Minister Harsh Sanghvi, Minister for Food and Civil Supplies Ramanbhai Bhikabai Solanki, Minister of State for Food and Civil Supplies Poonamchand Chhanabhai Baranda, Mayor of Gandhinagar Meeraben Patel, and senior officials from the Governments of India and Gujarat, as well as the Reserve Bank of India.
