PUDUCHERRY: Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi on Thursday announced that the Central Bank Digital Currency (CBDC)-based food subsidy distribution system will be expanded nationwide after successful pilot implementation in select regions.
The minister was speaking at the launch of the digital currency-based food subsidy distribution facility under the Pradhan Mantri Garib Kalyan Anna Yojana at Kamban Kalaiarangam in Puducherry. The pilot project is being implemented in coordination with the Puducherry government, Reserve Bank of India, Public Financial Management System and Canara Bank.
The scheme, initially piloted in Ahmedabad, has now been introduced in Puducherry.
Under the initiative, subsidies will be credited directly to beneficiaries’ digital wallets in the form of CBDC tokens. These tokens can be used exclusively to purchase entitled food grain from authorised merchants and fair price shops.
Referring to a past observation by former PM Rajiv Gandhi that only 15% of welfare funds reached beneficiaries, Joshi said PM Narendra Modi wants “every grain, every rupee and every entitlement” to reach the rightful beneficiary so that people come out of poverty.
The scheme is also part of the centre’s broader push for digital transformation under the 'Digital India' programme and contributes to the vision of a 'Viksit Bharat' by 2047. Joshi added that effective implementation of welfare will position India as a leading global power in the 21st century.
“Electronics production in our country has grown six-fold with 80% of electronic goods manufactured in our country, particularly iPhones, being exported to countries including the USA. As our country progresses in the manufacturing sector, we need skilled manpower," he said.
Lieutenant Governor K Kailashnathan, CM N Rangasamy, Speaker R Selvam, along with ministers and RBI officialswere present at the launch event.