CHANDIGARH: In a landmark milestone for India’s digital governance and public welfare ecosystem, Chandigarh scripted history as the first state or Union Territory in the country to launch Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) for food subsidy under the Public Distribution System (PDS).
It will be gradually expanded across the country.
The initiative was launched by Union Minister for Agriculture and Farmers’ Welfare and Rural Development Shivraj Singh Chouhan, who said the initiative marks an important step towards bringing greater transparency, security and timeliness to the Public Distribution System (PDS).
He said the CBDC-based DBT system will enable payments for ration and foodgrains to reach beneficiaries directly, securely and transparently.
"The pilot launched in Chandigarh is intended to serve as a model for adoption across the country. Under the new system, technological safeguards have been incorporated to ensure that beneficiaries can use the funds only for purchasing foodgrains and other essential food items, preventing the money from being diverted for other purposes. At the same time, beneficiaries will have greater choice. In addition to wheat and rice, they will be able to opt for pulses or other essential food commodities,’’ he added.
He praised the departmental team and officials for developing the system and described the initiative as a major technological innovation. He said that DBT has ensured that benefits reach account holders directly, thereby reducing the scope for intermediaries and irregularities.
At the same time, he acknowledged that once money is transferred in cash, there can be a risk of it being used for purposes other than those intended.
"Thereby, the CBDC-based system has been designed with technological safeguards that ensure the benefit is spent directly on ration and other food items, thereby preventing misuse,’’ said Chouhan.
Highlighting Chandigarh’s distinctive character and civic consciousness, Chouhan said that the experiment launched in the city would, if successful, be gradually expanded across the country.
He urged officials to address local challenges and ensure the expansion of the system so that its benefits reach every family.
He said the Chandigarh programme is a reflection of this approach, where technology and government policies are being used to bring tangible improvements to the everyday lives of ordinary citizens.
In the “Lakhpati Didi” target, Chouhan said that the government has resolved to make 60 million rural women financially prosperous by 2029.
Chouhan claimed that there would be no compromise on farmers’ interests in matters relating to agricultural policy and food security.
He said that all agreements entered into with countries across the world concerning farmers have been guided by the principle that national interest, farmers’ interests and public interest remain paramount.
"Sadly, the Opposition has a problem even with this,” he said.
Referring to the country’s strong stocks of wheat and rice, Chouhan said India is now capable of meeting its domestic requirements and exporting when necessary.
He said that under the Prime Minister’s leadership, the transparent delivery of PM-KISAN Samman Nidhi and other benefits will continue, with the protection and welfare of farmers remaining the government’s highest priority.
He also criticised disruptions in parliament and the conduct of the opposition, stressing that the dignity of democracy must be upheld.
He said such disruptions amount to an insult to the Constitution and the democratic process, and that necessary decisions will be taken in the national interest. Chouhan emphasised that debate is essential in a democracy, but disruption is unacceptable.